Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2019 | Sep. 30, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Organicell Regenerative Medicine, Inc. | |
Entity Central Index Key | 0001557376 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity's Reporting Status Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 875,194,450 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity File Number | 000-55008 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | NV |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Current Assets | ||
Cash | $ 36,578 | $ 43,016 |
Accounts receivable, net of allowance for bad debts | 62,406 | 48,025 |
Prepaid expenses | 46,544 | 15,221 |
Inventories | 62,093 | 0 |
Total Current Assets | 207,621 | 106,262 |
Property and equipment, net | 269,237 | 5,778 |
Security deposits | 5,000 | 5,000 |
TOTAL ASSETS | 481,858 | 117,040 |
Current Liabilities | ||
Accounts payable and accrued expenses | 516,584 | 476,833 |
Accrued liabilities to management | 703,925 | 327,662 |
Notes payable | 25,000 | 60,000 |
Capital lease obligations | 63,182 | 0 |
Convertible debentures | 220,000 | 320,000 |
Deferred revenue | 5,840 | 21,520 |
Liabilities attributable to discontinued operations | 125,851 | 125,851 |
Total Current Liabilities | 1,660,382 | 1,331,866 |
Long term capital lease obligations | 165,779 | 0 |
Commitments and contingencies | ||
Stockholders' Deficit | ||
Common stock, $0.001 par value, 1,500,000,000 shares authorized; 484,136,805 and 436,490,110 shares issued and outstanding, respectively | 484,137 | 436,490 |
Additional paid-in capital | 13,734,703 | 12,853,608 |
Accumulated deficit | (15,563,143) | (14,547,901) |
Total deficit attributable to Organicell Regenerative Medicine, Inc. | (1,344,303) | (1,257,803) |
Non-controlling interest | 0 | 42,977 |
Total Stockholders' Deficit | (1,344,303) | (1,214,826) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 481,858 | $ 117,040 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 484,136,805 | 436,490,110 |
Common stock, shares outstanding | 484,136,805 | 436,490,110 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 578,705 | $ 206,204 | $ 1,116,627 | $ 716,394 |
Cost of revenues | 80,630 | 38,971 | 194,640 | 138,271 |
Gross profit | 498,075 | 167,233 | 921,987 | 578,123 |
General and administrative expenses | 837,219 | 468,683 | 1,987,737 | 3,649,797 |
Loss from operations | (339,144) | (301,450) | (1,065,750) | (3,071,674) |
Other income (expense) | ||||
Interest expense | (12,060) | (5,770) | (31,934) | (219,809) |
Reduction of derivative liabilities | 0 | 0 | 0 | 265,597 |
Other | 609 | (69) | 81,464 | (20,460) |
Loss before income taxes | (350,595) | (307,289) | (1,016,220) | (3,005,426) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (350,595) | (307,289) | (1,016,220) | (3,005,426) |
Net income (loss) attributable to the non-controlling interest | (298) | (340) | (978) | 31,086 |
Net loss attributable to Organicell Regenerative Medicine, Inc. | $ (350,297) | $ (306,949) | $ (1,015,242) | $ (3,036,512) |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted | 476,532,595 | 405,492,820 | 456,530,735 | 216,507,106 |
Consolidated Changes to Stockho
Consolidated Changes to Stockholders' Deficit (Unaudited) - USD ($) | Series A | Series B | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders Deficit Attributable To Organicell | Noncontrolling Interest | Total |
Balance, value at Oct. 31, 2017 | $ 111,465 | $ 7,417,321 | $ (11,085,743) | $ (3,556,957) | $ 52,744 | $ (3,504,213) | ||
Balance, shares at Oct. 31, 2017 | 400 | 111,464,987 | ||||||
Cancellation of preferred stock in connection with Reorganization, value | ||||||||
Cancellation of preferred stock in connection with Reorganization, shares | (400) | |||||||
Acquisition of non-controlling interest, value | 3,658 | 3,658 | (43,658) | (40,000) | ||||
Acquisition of non-controlling interest, shares | ||||||||
Proceeds from sale of common stock, value | $ 6,250 | 93,750 | 100,000 | 100,000 | ||||
Proceeds from sale of common stock, shares | 6,250,050 | |||||||
Exchange of debt obligations, value | ||||||||
Exchange of debt obligations, shares | ||||||||
Exercise of cashless warrants, value | $ 70,382 | (70,382) | ||||||
Exercise of cashless warrants, shares | 70,382,456 | |||||||
Stock-based compensation, value | $ 242,893 | 3,740,454 | 3,986,346 | 3,145 | 3,989,491 | |||
Stock-based compensation, shares | 245,892,617 | |||||||
Executive forgiveness of employment obligations in connection with Reorganization | 1,636,808 | 1,636,808 | 1,636,808 | |||||
Net loss | (3,036,512) | (3,036,512) | 31,086 | (3,005,426) | ||||
Balance, value at Jul. 31, 2018 | $ 433,990 | 12,821,608 | (14,122,255) | (866,657) | 43,317 | (823,340) | ||
Balance, shares at Jul. 31, 2018 | 433,990,110 | |||||||
Balance, value at Apr. 30, 2018 | $ 432,290 | 12,777,409 | (13,815,306) | (605,607) | 43,657 | (561,950) | ||
Balance, shares at Apr. 30, 2018 | 432,290,110 | |||||||
Cancellation of preferred stock in connection with Reorganization, value | ||||||||
Cancellation of preferred stock in connection with Reorganization, shares | ||||||||
Acquisition of non-controlling interest, value | ||||||||
Acquisition of non-controlling interest, shares | ||||||||
Proceeds from sale of common stock, value | ||||||||
Proceeds from sale of common stock, shares | ||||||||
Exchange of debt obligations, value | ||||||||
Exchange of debt obligations, shares | ||||||||
Exercise of cashless warrants, value | ||||||||
Exercise of cashless warrants, shares | ||||||||
Stock-based compensation, value | $ 1,700 | 44,199 | 45,899 | 45,899 | ||||
Stock-based compensation, shares | 1,700,000 | |||||||
Executive forgiveness of employment obligations in connection with Reorganization | ||||||||
Net loss | (306,949) | (306,949) | (340) | (307,289) | ||||
Balance, value at Jul. 31, 2018 | $ 433,990 | 12,821,608 | (14,122,255) | (866,657) | 43,317 | (823,340) | ||
Balance, shares at Jul. 31, 2018 | 433,990,110 | |||||||
Balance, value at Oct. 31, 2018 | $ 436,490 | 12,853,608 | (14,547,901) | (1,257,803) | 42,977 | (1,214,826) | ||
Balance, shares at Oct. 31, 2018 | 436,490,110 | |||||||
Cancellation of preferred stock in connection with Reorganization, value | ||||||||
Cancellation of preferred stock in connection with Reorganization, shares | ||||||||
Acquisition of non-controlling interest, value | $ 6,800 | 35,199 | 41,999 | (41,999) | ||||
Acquisition of non-controlling interest, shares | 6,800,000 | |||||||
Proceeds from sale of common stock, value | $ 15,102 | 339,398 | 354,500 | 354,500 | ||||
Proceeds from sale of common stock, shares | 15,102,000 | |||||||
Exchange of debt obligations, value | $ 7,620 | 196,044 | 203,664 | 203,664 | ||||
Exchange of debt obligations, shares | 7,619,695 | |||||||
Exercise of cashless warrants, value | ||||||||
Exercise of cashless warrants, shares | ||||||||
Stock-based compensation, value | $ 18,125 | 310,454 | 328,579 | 328,579 | ||||
Stock-based compensation, shares | 18,125,000 | |||||||
Executive forgiveness of employment obligations in connection with Reorganization | ||||||||
Net loss | (1,015,242) | (1,015,242) | (978) | (1,016,220) | ||||
Balance, value at Jul. 31, 2019 | $ 484,137 | 13,734,703 | (15,563,143) | (1,344,303) | (1,344,303) | |||
Balance, shares at Jul. 31, 2019 | 484,136,805 | |||||||
Balance, value at Apr. 30, 2019 | $ 460,067 | 13,311,195 | (15,212,846) | (1,441,584) | 42,297 | (1,399,287) | ||
Balance, shares at Apr. 30, 2019 | 460,067,110 | |||||||
Cancellation of preferred stock in connection with Reorganization, value | ||||||||
Cancellation of preferred stock in connection with Reorganization, shares | ||||||||
Acquisition of non-controlling interest, value | $ 6,800 | 35,199 | 41,999 | (41,999) | ||||
Acquisition of non-controlling interest, shares | 6,800,000 | |||||||
Proceeds from sale of common stock, value | $ 2,500 | 47,500 | 50,000 | 50,000 | ||||
Proceeds from sale of common stock, shares | 2,500,000 | |||||||
Exchange of debt obligations, value | $ 7,620 | 196,044 | 203,664 | 203,664 | ||||
Exchange of debt obligations, shares | 7,619,695 | |||||||
Exercise of cashless warrants, value | ||||||||
Exercise of cashless warrants, shares | ||||||||
Stock-based compensation, value | $ 7,150 | 144,765 | 151,915 | 151,915 | ||||
Stock-based compensation, shares | 7,150,000 | |||||||
Executive forgiveness of employment obligations in connection with Reorganization | ||||||||
Net loss | (350,297) | (350,297) | (298) | (350,595) | ||||
Balance, value at Jul. 31, 2019 | $ 484,137 | $ 13,734,703 | $ (15,563,143) | $ (1,344,303) | $ (1,344,303) | |||
Balance, shares at Jul. 31, 2019 | 484,136,805 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,016,220) | $ (3,005,426) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 8,872 | 7,342 |
Bad debt expense | 0 | 36,090 |
Stock-based compensation | 328,579 | 3,989,496 |
Interest expense paid in kind | 13,668 | 0 |
Amortization of debt discount | 0 | 179,968 |
Settlement of executive employment obligations | 0 | (1,063,083) |
Gain on sale of Anu assets | 0 | (821,070) |
Reduction of derivative liabilities | 0 | (265,597) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for bad debts | (14,382) | 16,604 |
Prepaid expenses | (31,323) | (4,176) |
Inventories | (62,093) | 60,319 |
Accounts payable and accrued expenses | 39,748 | (27,540) |
Accrued liabilities to management | 376,263 | 585,232 |
Deferred rent | 0 | 1,948 |
Deferred revenue | (15,680) | (54,995) |
Net cash used in operating activities | (372,568) | (364,888) |
CASH FLOWS FROM INVESTING | ||
Purchase of fixed assets | (32,736) | (4,569) |
Purchase of non-controlling interests in Mint Organics | 0 | (40,000) |
Proceeds from the sale of Anu assets | 0 | 140,022 |
Net cash (used in) provided by investing activities | (32,736) | 95,453 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of notes payable & debentures | 55,000 | 150,000 |
Payments on capital leases | (10,634) | 0 |
Proceeds from sale of common stock and warrants | 354,500 | 100,000 |
Net cash provided by financing activities | 398,866 | 250,000 |
Decrease in cash | (6,438) | (19,435) |
Cash at beginning of period | 43,016 | 39,560 |
Cash at end of period | 36,578 | 20,125 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for taxes | 0 | 0 |
Cash paid for interest | 15,513 | 32,534 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Capital lease obligations | 239,595 | 0 |
Conversion of debt into common stock | 203,668 | 0 |
Executive forgiveness of employment obligations in connection with Reorganization | 1,636,808 | |
Outstanding SPA and other obligations satisfied in connection with the Sale | $ 0 | $ 809,978 |
1. Organization and Description
1. Organization and Description of Business | 9 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Organicell Regenerative Medicine, Inc. (formerly Biotech Products Services and Research, Inc.) (“Organicell” or the “Company”) was incorporated on August 9, 2011 in the State of Nevada. Until October 30, 2015, the Company’s business included the designing, manufacturing, and selling vending tricycles for commercial customers. Since June 2015, the Company has been engaged in the health care industry, principally focusing on supplying products and services related to the growing field of regenerative anti-aging medicine. On April 23, 2018, the Company and Management and Business Associates, LLC, a Florida limited liability company (“MBA”), executed a Plan and Agreement of Reorganization (“Reorganization”), whereby the Company issued to MBA an aggregate of 222,425,073 shares of its common stock of the Company, representing at the time 51% of the outstanding shares of common stock of the Company on fully-diluted basis, for $0.001 per share (or an aggregate of $222,425), in consideration for Mr. Manuel Iglesias’ agreement to serve as the Company’s Chief Executive Officer (“CEO”) and a member of the Board of the Company. The Reorganization was effective as of April 13, 2018 (“Effective Date”). The Reorganization also provided for the cancelation and termination of the Company’s previously issued and outstanding Series A Preferred Stock and Series B Preferred Stock. As a result of the above Reorganization, MBA acquired at the time a controlling interest of the Company (see Note 5). On May 21, 2018, the Company filed a Certificate of Amendment with the Secretary of State of Nevada to change the Company’s name from Biotech Products Services and Research, Inc. to Organicell Regenerative Medicine, Inc., effective June 20, 2018 (the “Name Change”). As discussed in Note 12, the Name Change has not yet been effectuated in the marketplace by the Financial Industry Regulatory Agency (“FINRA”). For the nine months ended July 31, 2019, the Company principally operated through General Surgical of Florida, Inc., a Florida corporation (“General Surgical”) and wholly owned subsidiary, with a business purpose to sell cellular therapy products to doctors and hospitals. During the nine months ended July 31, 2019, the Company revenues were principally derived from the sale and distribution of regenerative biologic therapies based on amnion placental tissue derived products to doctors and hospitals. For the period November 1, 2018 through April 2019, the Company sold products produced and supplied through third party supply agreements. During February 2019, the Company began arranging to operate a new laboratory facility for the purpose of performing research and development, production and manufacturing of anti-aging and cellular therapy products. This new laboratory facility became operational in May 2019 and during the same period, the Company began producing and distributing the products that are being sold to its customers. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the rules and regulations of the Securities Exchange Commission, although we believe that the disclosures made are adequate to make the information not misleading. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended October 31, 2018 filed with the Securities and Exchange Commission. Concentrations of Credit Risk The balance sheet items that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Balances in accounts are insured up to Federal Deposit Insurance Corporation (“FDIC”) limits of $250,000 per institution. At July 31, 2019, the Company did not have any cash balances in financial institutions in excess of FDIC insurance coverage. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Accounts Receivable Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made. For the three months ended July 31, 2019 and 2018, the Company recorded bad debt expense of $0. For the nine months ended July 31, 2019 and 2018, the Company recorded bad debt expense $0 and $36,090, respectively. Inventory Inventory is stated at the lower of cost or net realizable value using the average cost method. We provide reserves for potential excess, dated or obsolete inventories based on an analysis of forecasted demand compared to quantities on hand and any firm purchase orders, as well as product shelf life. At July 31, 2019, we determined that there were not any reserves required in connection with our finished goods. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives of property and equipment range from 3 to 15 years. Upon sale or retirement, the cost and related accumulated depreciation and amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. Revenue Recognition Effective November 1, 2018, the Company adopted FASB Accounting Standards Update (“ASU”) Topic 606 “Revenue from Contracts with Customers” which requires the Company to recognize revenue in amounts that reflect the prorata completion of the performance obligations of the Company required under the contracts. The Company applied the new standard using a modified retrospective approach. The Company recognizes revenue only when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. Our performance obligations are satisfied and control is transferred at a point-in-time, which is typically when the transfer and title to the product sold has taken place and there is evidence of our customer’s satisfactory acceptance of the product shipment or delivery. Due to the nature of the Company’s sales transactions, this adoption did not have any impact to the Company’s financial statements for the nine months ended July 31, 2019. Net Income (Loss) Per Common Share Basic income (loss) per common share is calculated by dividing the Company's net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company's net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted average number of shares adjusted for any potentially dilutive debt or equity. At July 31, 2019, the Company had 5,115,084 common shares issuable upon the exercise of warrants that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the three and nine months ended July 31, 2019. At July 31, 2018, the Company had 3,687,484 common shares issuable upon the exercise of warrants that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the three and nine months ended July 31, 2018. Stock-Based Compensation All share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their fair values. Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based upon the estimated fair value of the option or warrant. Income Taxes The Company is required to file a consolidated tax return that includes all of its subsidiaries. Provisions for income taxes are based on taxes payable or refundable for the current year taxable income for federal and state income tax reporting purposes and deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss carryforwards. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of the operations in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with FASB Topic 740 – Income Taxes. This pronouncement prescribes a recognition threshold and measurement process for financial statement recognition of uncertain tax positions taken or expected to be taken in a tax return. The interpretation also provides guidance on recognition, derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. For the nine months ended July 31, 2019 the Company incurred operating losses, and therefore, there was not any income tax expense amount recorded during that period. During the nine months ended July 31, 2018 there was a change in ownership which caused a change in control under IRC Section 382 (“Section 382 event”). Prior to the Section 382 event, the Company utilized a portion of its available net operating loss carryforwards to offset income through that date mainly resulting from the sale of ANU. Any remaining net operating losses which had been carried forward from years ended October 31, 2017 and before the Section 382 event were lost. There is a full valuation allowance for nine months ended July 31, 2019 and 2018. Since January 1, 2018, the nominal corporate tax rate in the United States of America is 21 percent due to the passage of the "Tax Cuts and Jobs Act" on December 20, 2017 by the US Senate and House of Representatives. Valuation of Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date. We analyzed the derivative financial instruments in accordance with ASC 815. The Company utilized Monte Carlo Simulation models that value the derivative liability based on a probability weighted discounted cash flow model. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. The derivative liabilities result in a reduction of the initial carrying amount (as unamortized discount) of the Convertible Notes. This derivative liability is marked-to-market each quarter with the change in fair value recorded in the income statement. Unamortized discount is amortized to interest expense using the effective interest method over the life of the Convertible Note. Fair Value of Financial Instruments The Company includes fair value information in the notes to financial statements when the fair value of its financial instruments is different from the book value. When the book value approximates fair value, no additional disclosure is made. The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities and convertible debt. The estimated fair value of cash, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. The Company follows the provisions of ASC 820 with respect to its financial instruments. As required by ASC 820, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s convertible features associated with its promissory notes (see Note 9) which were required to be measured at fair value on a recurring basis under of ASC 815 as of January 31, 2018, the date immediately prior to the event that eliminated the convertible instrument related to the derivative liability, and October 31, 2017, were all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities as of January 31, 2018 and October 31, 2017: Level one Level two Level three The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company’s derivative liability is measured at fair value on a recurring basis. The Company classifies the fair value of the derivative liability under level three. Based on ASC Topic 815 and related guidance, the Company concluded the common stock issuable pursuant to the conversion features of the convertible promissory notes are required to be accounted for as derivatives as of the issue date due to a reset feature on the exercise price. At the date of issuance common stock derivative liabilities were measured at fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques. The Company records the fair value of these derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statements of operations as “change in fair value of derivative liabilities.” These derivative instruments are not designated as hedging instruments under ASC 815-10 and are disclosed on the balance sheet under Derivative Liabilities. Further, and in accordance with ASC 815, the embedded derivatives are revalued using a Monte Carlo Simulation model at issuance and at each balance sheet date and marked to fair value with the corresponding adjustment as a “gain or loss on change in fair values” in the consolidated statement of operations. The Company classifies the fair value of these securities under level three of the fair value hierarchy of financial instruments. Changes in the unobservable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. During the nine months ended July 31, 2018, the Company recorded a gain of $265,597 associated with the change in fair value of the derivative liabilities from October 31, 2017. The Company did not have any convertible instruments outstanding at July 31, 2019 and October 31, 2018 that qualify as derivatives. Recent Accounting Pronouncements In February 2016, a pronouncement was issued by the FASB that creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company does not expect that implementation of the new pronouncement will have a material impact to its financial statements. Subsequent Events The Company has evaluated subsequent events that occurred after July 31, 2019 through the financial statement issuance date for subsequent event disclosure consideration. |
3. Going Concern
3. Going Concern | 9 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 3 – GOING CONCERN The unaudited accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has had limited revenues since its inception. The Company incurred operating losses of $1,065,750 for the nine months ended July 31, 2019. In addition, the Company had an accumulated deficit of $15,563,143 at July 31, 2019. The Company had a negative working capital position of $1,452,761 at July 31, 2019. In addition to the above, the outbreak of the novel coronavirus (“COVID-19”) during March 2020 and the resulting adverse public health developments and economic effects to the United States business environments have adversely affected the demand for our products and services by our customers and from patients of our customers as a result of quarantines, facility closures and social distancing measures put into effect in connection with the COVID-19 outbreak and which currently still continue to have a negative impact to our business and the economy. These restrictions have adversely affected the Company’s sales, results of operations and financial condition. In response to the COVID-19 outbreak, the Company (a) has accelerated its research and development activities, particularly in regards to potential health benefits of the Company’s products in addressing various health concerns associated with COVID-19 and (b) is aggressively seeking to raise additional debt and/or equity financing to support working capital requirements until sale for its products to providers resumes to levels pre COVID-19. As a result of the above, the Company’s efforts to establish a stabilized source of sufficient revenues to cover operating costs has yet to be achieved and ultimately may prove to be unsuccessful unless (a) the United States economy resumes to pre-COVID-19 conditions and (b) additional sources of working capital through operations or debt and/or equity financings are realized. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management anticipates that the Company will remain dependent, for the near future, on additional investment capital to fund ongoing operating expenses and the costs to perform required clinical studies in connection with the sale of its products. The Company does not have any assets to pledge for the purpose of borrowing additional capital. In addition, the Company relies on its ability to produce and sell products it manufactures that are subject to changing technology and regulations that it currently sells and distributes to its customers. The Company’s current market capitalization and common stock liquidity will hinder its ability to raise equity proceeds. The Company anticipates that future sources of funding, if any, will therefore be costly and dilutive, if available at all. In view of the matters described in the preceding paragraphs, recoverability of the recorded asset amounts shown in the accompanying consolidated balance sheet assumes that (1) the effects of the COVID-19 crisis resume to pre-COVID 19 market conditions, (2) the Company will be able to establish a stabilized source of revenues, (3) obligations to the Company’s creditors are not accelerated, (4) the Company’s operating expenses remain at current levels and/or the Company is successful in restructuring and/or deferring ongoing obligations, (5) the Company is able to continue to produce products or obtain products under supply arrangements which are in compliance with current and future regulatory guidelines, (6) the Company is able to continue its research and development activities, particularly in regards to remaining compliant with the FDA and the safety and efficacy of its products, and (7) the Company obtains additional working capital to meet its contractual commitments and maintain the current level of Company operations through debt or equity sources. There is no assurance as to when the adverse impact to the United States and worldwide economies resulting from the COVID-19 outbreak will be eliminated, if at all, and whether any new or recurring pandemic outbreaks will occur again in the future causing similar or worse devastating impact to the United States and worldwide economies and our business. In addition, there is no assurance that the Company will be able to complete its revenue growth strategy, its expected required research and development activities or otherwise obtain sufficient working capital to cover ongoing cash requirements. Without sufficient cash reserves, the Company’s ability to pursue growth objectives will be adversely impacted. Furthermore, despite significant effort since July 2015, the Company has thus far been unsuccessful in achieving a stabilized source of revenues. As described above, the COVID-19 crisis has significantly impaired the Company and the overall Unites States and World economies. If revenues do not increase and stabilize, if the COVID-19 crisis is not satisfactorily managed and/or resolved or if additional funds cannot otherwise be raised, the Company might be required to seek other alternatives which could include the sale of assets, closure of operations and/or protection under the U.S. bankruptcy laws. As of July 31, 2019, based on the factors described above, the Company concluded that there was substantial doubt about its ability to continue to operate as a going concern for the 12 months following the issuance of these financial statements. |
4. Sale and Transfer of Anu Man
4. Sale and Transfer of Anu Manufacturing Assets | 9 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Sale and Transfer of Anu Manufacturing Assets | NOTE 4 – SALE AND TRANSFER OF ANU MANUFACTURING ASSETS Effective February 5, 2018 (“Closing Date”), Vera Acquisition LLC, a Utah limited liability company ("Vera"), Organicell, ANU and General Surgical, executed an Asset Purchase Agreement ("Purchase Agreement") pursuant to which ANU sold to Vera (“Sale”) their right, title and interest in certain tangible and other assets associated with its manufacturing operations, including, prepaid expenses, raw and finished goods inventory, a long term lease for ANU’s laboratory facility in Sunrise, Florida (including associated security deposits), furniture and equipment, and certain intellectual property rights and General Surgical transferred its rights to certain third-party distribution agreements between General Surgical and distributors of products manufactured by ANU (“Sold Assets”) in exchange for a cash payment of $950,000 and the execution of a long term distribution agreement with Organicell (“Organicell Distribution Agreement”) described below. In connection with the Sale, Vera received credit for $100,000 previously paid to ANU for prepaid product supply that was not yet delivered to Vera as of the Closing Date. In connection with the Sale, the Company was required to use cash proceeds from the Sale to satisfy and extinguish all of the Notes outstanding related to the SPA as of the date of the Sale, totaling approximately $762,477 (comprised of $527,778 of face value of the Notes outstanding, $8,589 of accrued and unpaid interest from January 1, 2018 through the date of the Sale, $211,111 of prepayment penalties and $15,000 for reimbursement of legal fees), which were secured by a first priority lien on all of the Company’s assets, and to be used to pay all of ANU’s remaining trade accounts payable outstanding as of the Closing Date. In addition, the Purchase Agreement required ANU to fund the placental donor tissue costs that were required by Vera to process additional product subsequent to the Closing to replace the shortfall of the actual inventory product amounts as of the Closing Date and the specified inventory quantities provided for in the Purchase Agreement. The Purchase Agreement also required ANU to escrow $47,500 (5%) of the cash purchase price and for General Surgical to escrow, subsequent to the Closing Date, up to $47,500 from collections of accounts receivable that were existing as of the Closing Date for a period of 90 days subsequent to the Closing Date to cover pre-closing related liabilities of ANU that were not identified as of the Closing Date, if any, and other obligations of ANU associated with the Purchase Agreement. Effective upon the closing of the Sale, Dr. Werber and Mr. Suddarth each entered into a separation and general release agreement with the Company, which provided for the immediate resignation of Dr. Werber and Mr. Suddarth of all their respective executive and board of director positions held with Organicell and/or any of Organicell’s subsidiaries, and settlement of all obligations of each party to the other pursuant to the respective employment agreements, including the release of all rights the Company may have held in any intellectual property of Dr. Werber and Mr. Suddarth and any non-compete restrictions on Dr. Werber and Mr. Suddarth. In connection with such releases, Dr. Werber and Mr. Suddarth each agreed to forfeit all warrants previously granted and outstanding (a total of 77,150,000 warrants to purchase shares of common stock of the Company), forfeit any and all accrued and unpaid amounts owing under the employment agreements for past due wages, benefits, severance obligations, unreimbursed expenses and any other obligations owing to one another as of the Closing Date (totaling $906,515) in exchange for a grant of 7,500,000 newly issued shares of restricted common stock of the Company to each of Dr. Werber and Mr. Suddarth, with a fair value of $83,250, based on the closing price of the common stock of the Company on the date of the Sale. In connection with the Sale, ANU and General Surgical retained all cash on-hand as of the Closing Date and General Surgical retained all accounts receivable existing at the Closing Date, trademarks and inventory associated with the distribution of its “Organicell” product, and certain agreements between General Surgical and distributors of the ANU products that General Surgical intends to continue to supply after the Closing Date pursuant to the Organicell Distribution Agreement. After the completion of the Sale, the Company remained in the business of selling and distributing regenerative biologic therapies based on amnion placental tissue derived products to doctors and hospitals but was required to depend on third party supply agreements, rather than from products manufactured internally by ANU, for the supply of these advanced biologically processed cellular and tissue based products. During February 2019, the Company began arranging to operate a new laboratory facility for the purpose of performing research and development, production and manufacturing of anti-aging and cellular therapy products. This new laboratory facility became operational in May 2019 and during the same period, the Company began producing and distributing the products that are being sold to its customers. Notice Of Change In Vera Operations During August 2018, Vera notified the Company that it had sold most of the principal assets acquired in the Sale to another entity, that it was no longer in the business originally acquired in connection with the Sale and that it was no longer able to supply products to the Company under the Organicell Distribution Agreement. As a result, since that date, up thru May 2019, the date Organicell began producing products internally, the Company has entered into other short-term supply agreements with other third-party manufacturers to provide it with the products it sells to its customers. Since Vera’s disposition of the assets originally acquired in connection with the Sale as described above, the Company has yet to receive any payments from Vera associated with the original escrow deposit of $47,500 that was withheld from the proceeds from the Sale. Due to the uncertainty of Vera’s ability and/or desire to repay the escrow receivable amount outstanding to the Company, the Company has recorded a reserve for the full amount of escrow receivable totaling $47,500 during the fourth quarter ended October 31, 2018. |
5. Reorganization
5. Reorganization | 9 Months Ended |
Jul. 31, 2019 | |
Reorganizations [Abstract] | |
Reorganization | NOTE 5 – REORGANIZATION On April 23, 2018, the Company and MBA, executed a Plan and Agreement of Reorganization (“Reorganization”) whereby the Company agreed to issue to MBA an aggregate of 222,425,073 shares of its common stock, representing at the time 51% of the outstanding shares of common stock of the Company on fully-diluted basis, for $0.001 per share, in consideration for Mr. Manuel Iglesias’ agreement to serve as the Company’s Chief Executive Officer and a member of the Board of the Company. The Reorganization was effective as of April 13, 2018. The Company has recorded $2,758,071 of stock compensation expense associated with the issuance of the shares referred to above for Mr. Iglesias’s agreement to serve as the Company’s Chief Executive Officer during the three months ended April 30, 2018. As a result of the above transactions, MBA obtained a controlling interest in the voting and equity interests of the Company. Manuel E. Iglesias is the sole Manager of MBA and thus may be deemed to control MBA. Since the date of the Reorganization, MBA’s interests held in the equity of the Company have been reduced from 51.0% to approximately 24.6%. Under the terms of the Reorganization, as of the Effective Date: 1. Mr. Iglesias replaced Albert Mitrani as Chief Executive Officer of the Company. 2. Mr. Iglesias and Richard Fox were appointed as members to the Board of Directors of the Company. Mr. Fox resigned in May 2019 and Mr. Robert Zucker was appointed to fill his vacancy. Mr. Zucker resigned from the Board of Directors in April 2020. 3. Ian Bothwell and Maria Mitrani resigned from the Board of Directors of the Company. Ms. Mitrani was re-appointed to the Board of Directors of the Company during August 2019. Mr. Bothwell was re-appointed to the Board during September 2019. 4. Albert Mitrani, Ian Bothwell and Maria Mitrani each agreed to terminate their respective employment agreements in favor of new employment agreements. In connection with the new employment agreements, Mr. Mitrani agreed to serve as the Company’s President, Ian Bothwell agreed to remain Chief Financial Officer and Maria Mitrani agreed to remain Chief Science Officer of the Company. 5. Albert Mitrani, Ian Bothwell and Maria Mitrani each agreed to the cancellation of their 100 shares of the Company’s Series A Preferred Stock. In addition, the Company agreed that it would cancel the Certificates of Designation for the Company’s Series A Preferred Stock and Series B Preferred Stock. 6. The Company agreed to terminate Sections 4.08(c) and 4.08(d) of the Company’s Second Amended and Restated By-Laws which had required supermajority approval of the Board for certain corporate actions. 7. Ian Bothwell and Maria Mitrani exercised, on a cashless basis, all of their warrants for 48,624,561 and 21,757,895, respectively, shares of common stock of the Company based on the exercise price of $0.001 and the closing price of the Company’s common stock on the Effective Date. 8. Ian Bothwell and Maria Mitrani were granted an additional 4,675,439 and 2,092,105, respectively, shares of common stock of the Company (see Note 12). 9. Albert Mitrani, Ian Bothwell and Maria Mitrani each agreed to release the Company for all amounts owed to them for unpaid salaries through the Effective Date and advances and/or expenses incurred prior to December 31, 2017 totaling $1,636,808. |
6. Inventories
6. Inventories | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6 – INVENTORIES Inventories totaled $62,093 and $0 at July 31, 2019 and October 31, 2018, respectively. July 31, 2019 October 31, 2018 Raw materials and supplies $ 5,875 $ – Finished goods 56,218 – Total inventories $ 62,093 $ – |
7. Property and Equipment
7. Property and Equipment | 9 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 7 - PROPERTY AND EQUIPMENT July 31, 2019 October 31, 2018 Computer equipment $ 8,653 $ 8,653 Manufacturing equipment 272,331 – 280,984 8,653 Less: accumulated depreciation and amortization (11,747 ) (2,875 ) Total property and equipment, net $ 269,237 $ 5,778 Depreciation expense totaled $5,906 and $492 for the three months ended July 31, 2019 and 2018, respectively. Depreciation expense totaled $8,872 and $7,342 for the nine months ended July 31, 2019 and 2018, respectively. During March 2019, the Company entered into a lease agreement for certain lab equipment in the amount of $239,595. Under the terms of the lease agreement, the Company is required to make 60 equal monthly payments of $4,513 plus applicable sales taxes. Under the Lease Agreement, the Company has the right to acquire all of the leased equipment for $1.00. As a result, the lease agreement is being accounted for as a capital lease obligation. The annual interest rate charged in connection with the lease is 4.5%. The leased equipment is being depreciated over their estimated useful lives of 15 years. |
8. Related Party Transactions
8. Related Party Transactions | 9 Months Ended |
Jul. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 8 – RELATED PARTY TRANSACTIONS Effective February 5, 2018, Dr. Werber’s and Mr. Suddarth’s executive employment agreements were terminated and the parties entered into a settlement agreement providing for the release of all obligations owed to Dr. Werber and Mr. Suddarth as of the date of the Sale in exchange for each receiving a grant for 7,500,000 shares of common stock of the Company. On April 6, 2018, Dr. Mitrani’s and Mr. Bothwell’s executive employment agreements were amended to modify the exercise price of their outstanding warrants under certain conditions. Effective April 13, 2018, Mr. Mitrani’s, Dr. Mitrani’s and Mr. Bothwell’s executive employment agreements were terminated and replaced with new executive employment agreements. On February 26, 2020, April 25, 2020 and June 29, 2020, Mr. Mitrani’s, Dr. Mitrani’s and Mr. Bothwell’s employments agreement were further amended. See Note 14 for a more detailed description of the executive employment agreements and the respective amendments referred to above. In connection with the Reorganization, Mr. Bothwell and Dr. Mitrani each agreed to exercise on a cashless basis all of their warrants to purchase 53,300,000 and 23,850,000 shares of common stock of the Company, respectively. Based on the closing price of the Company’s common stock on the Effective Date of $0.012 per share and the warrant exercise price of $0.001 per share, Mr. Bothwell and Dr. Mitrani were required to use 4,675,439 and 2,092,105 shares of common stock received from the exercise of the warrants, respectively, to pay for the exercise price for exercising all of the warrants (see Note 13). Effective April 13, 2018, Mr. Bothwell and Dr. Mitrani were each granted 4,675,439 and 2,092,105 shares of common stock of the Company, respectively. The newly granted shares vest immediately and were valued at $57,975 and $25,942, respectively, based on the closing trading price of the common stock on the effective date of the grant. In connection with the previous appointment of an independent member to the Board of Directors of the Company, during August 2019, the Board approved the issuance to the director of 5,000,000 shares of unregistered common stock valued at $0.028 per share, the closing price of the common stock of the Company on the grant date. Effective February 26, 2020, Mr. Bothwell was granted cashless warrants to purchase 7,500,000 shares of common stock of the Company. The newly granted warrants vest immediately, have an exercise price of $0.028 per share and are exercisable for ten years from the effective date of the grant. During April 2020, June 2020, August 2020 and September 2020, each of the current executives of the Company, Albert Mitrani, Dr. Mari Mitrani, Ian Bothwell and George Shapiro (“Current Executives”) were granted rights under the Management and Consultant Performance Plan (“MCPP”) to receive common stock of the Company based on the achievement of certain defined milestones. In addition, during June 2020, each of the current non-executive members of the Board were granted rights under the MCPP to receive common stock of the Company based on the achievement of certain defined milestones (see Note 12). The Company’s corporate administrative offices are leased from MariLuna, LLC, a Florida limited liability company which is owned by Dr. Mitrani. The term of the lease has been extended through June 2023. The current monthly rent is $2,900 and beginning July 2020, the monthly rent increases to $3,500. The Company paid a security deposit of $5,000. In connection with Mr. Bothwell’s executive employment agreements, the Company agreed to reimburse Rover Advanced Technologies, LLC, a company owned and controlled by Mr. Bothwell for office rent and other direct expenses (phone, internet, copier and direct administrative fees, etc.). On February 5, 2018, in connection with the Sale (see Note 4), all amounts owed to the Mr. Bothwell and Dr. Werber in connection with the SPA were repaid. On February 5, 2018, in connection with Dr. Werber’s resignation and termination, Dr. Werber agreed to the forfeit and the cancellation of the 100 shares of the Series A Preferred Stock previously issued. Effective April 13, 2018, in connection with the Reorganization, Mr. Mitrani, Mr. Bothwell and Dr. Mitrani each agreed to the forfeit and cancellation of their 100 shares of the Series A Preferred Stock. On April 6, 2018, Peter Taddeo resigned as a member of the Board of Directors of the Company and as the Chief Executive Officer and member of the board of directors of the Mint Organics Entities. In connection with Mr. Taddeo’s resignation, Mr. Taddeo entered into a Separation and General Release Agreement (“Taddeo Separation Agreement”) whereby Mr. Taddeo agreed to release the Mint Organics Entities from all obligations in connection with the Taddeo Agreement and all other agreements and/or financial obligations between the parties related to the Taddeo’s employment or services performed with any of Mint Organics Entities. In consideration for Taddeo entering into the Taddeo Separation Agreement, the Mint Organics Entities paid Taddeo $5,000 and Mr. Bothwell paid $3,000 to Taddeo for the purchase of the 1,000,000 shares of common stock of the Company that were granted to Taddeo in connection with the Taddeo Agreement. Contemporaneously with the execution of the Taddeo Separation Agreement, the Company and Mr. Taddeo entered into a Share Purchase and General Release Agreement whereby the Company agreed to purchase from Mr. Taddeo his 150 shares of Mint Series A Preferred Stock for an aggregate purchase price of $40,000 (see Note 15). On May 1, 2019, the Company and Mint Organics entered into an exchange agreement whereby the Company agreed to acquire the 150 shares of Mint Series A Preferred Stock and the 150,000 warrants to purchase shares of common stock of the Company originally issued to Mr. Wayne Rohrbaugh in connection with the initial capitalization of Mint Organics in exchange for 4,400,000 shares of common stock of the Company. As described in Note 5, on April 23, 2018, the Company and MBA executed a Plan and Agreement of Reorganization. As a result of the Reorganization, MBA acquired at the time a controlling interest of the Company. Manuel E. Iglesias is the sole Manager of MBA and thus may be deemed to control MBA. For the nine months ended July 31, 2019 and 2018, the total amount of sales to customers related to our board of director members and/or employees of the Company totaled $51,510 and $19,550, respectively. From time to time, Mr. Iglesias and Mr. Bothwell and/or their respective affiliates have advanced funds to the Company to pay for certain expenses of the Company. As of July 31, 2019, $199,397 and $57,881 are owed to Mr. Iglesias and Mr. Bothwell and/or their respective affiliates, respectively. In addition, the Company has not provided Mr. Bothwell required salary payments since July 2018. At July 31, 2019, salary amounts owed to Albert Mitrani, Dr. Mari Mitrani and Ian Bothwell were $108,386, $89,613 and $246,907, respectively. As described in Note 9, Mr. Iglesias has provided a personal guaranty in connection with amounts required to be paid under the Credit Facility. During April 2020 through May 2020, the Company sold 11,000,000 shares of common stock to Dr. Allen Meglin, a director of the Company at $0.02 per share for an aggregate purchase price of $220,000. During July and August 2020, the Company sold an additional 1,166,666 shares and 422,514 shares of common stock to Dr. Allen Meglin at $0.03 per share and $0.10 per share, respectively, for an aggregate purchase price of $77,251. On April 27, 2020, the Company sold 5,000,000 shares of common stock to Republic Asset Holdings LLC., a Company controlled by Michael Carbonara, a director of the Company, at $0.02 per share for an aggregate purchase price of $100,000. During September 2018, in consideration for Dr. George Shapiro agreeing to serve as the Company’s Chief Medical Officer (“CMO”) and render other medical consulting and advisory services to the Company, the Board approved the issuance to the CMO of 2,500,000 shares of common stock. In connection with the CMO’s appointment to the Board of Directors of the Company during February 2019, during February 2019 and August 2019, the Board approved the issuance to the CMO of 2,000,000 and 3,000,000 shares, respectively, of common stock. On February 26, 2020, the Company agreed to immediately grant the CMO 5,000,000 shares of common stock in recognition of past services provided to the Company through February 2020. In addition, the Company agreed to enter into a consulting agreement with the CMO to provide ongoing services to the Company. The CMO will receive compensation of $82,250 annually, commencing March 1, 2020. The term of the consulting agreement is one year, with automatic renewals for annual periods thereafter unless prior written notice is provided by either party of the desire to terminate. In connection with Mr. Robert Zucker’s resignation as a member of the Board of Directors of the Company in April 2020, the Board approved the issuance to Mr. Zucker of 736,808 shares of unregistered common stock of the Company valued at $0.022 per share, the closing price of the common stock of the Company on the grant date ($16,210). |
9. Notes Payable
9. Notes Payable | 9 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 9 — NOTES PAYABLE Private Placement Of Convertible Debentures On June 20, 2018, the Company issued a total of $150,000 of convertible 6% debentures (“150,000 Debentures”) to an accredited investor. The principal amount of the $150,000 Debentures, plus accrued and unpaid interest through June 30, 2019 are payable on the 10 th th On August 10, 2018, the Company issued a total of $100,000 of convertible 6% debentures (“100,000 Debentures”) to two accredited investors. The principal amount of the $100,000 Debentures, plus accrued and unpaid interest through July 31, 2019 are payable on the 10 th th During October 2018, the Company issued a total of $70,000 of convertible 6% debentures (“70,000 Debentures”) to two accredited investors. The principal amount of the $70,000 Debentures, plus accrued and unpaid interest through September 30, 2019 are payable on the 10 th th During March 2019, the Company issued a $30,000 of convertible 6% debentures (“30,000 Debenture”) to one accredited investor. The principal amount of the $30,000 Debenture, plus accrued and unpaid interest through June 30, 2020 are payable on the 10 th th Under the terms of the $150,000 Debentures, the $100,000 Debentures, the $70,000 Debentures and the $30,000 Debenture (collectively referred to as the “Convertible Debentures”), the Company is permitted to issue additional convertible 6% debentures up to a maximum aggregate principal amount of $1,000,000 of convertible 6% debentures, all of like tenor except as to the issuance date which shall be determined based on the date that additional convertible debentures are issued, if any. The Company used the proceeds from the Convertible Debentures totaling $350,000 for general working capital purposes. The Convertible Debentures may be prepaid at any time by the Company in whole or in part without penalty upon 30 days written notice but not to exceed 60 days (“Repayment Notice”) at a price equal to the principal amount outstanding of the Convertible Debentures’ elected to be repaid by the Company, plus all unpaid and accrued interest up through the date of prepayment provided in the Repayment Notice (“Prepayment Date”). The Convertible Debentures (the principal and all accrued but unpaid interest thereon) contained provisions that under certain conditions, provided the ability of the holders of the Convertible Debentures at their option at any time, from time to time to convert into shares of the common stock of the Company. The conversion prices were based on the Company completing a contemplated pending reverse split at the Company’s sole discretion (which the Company elected not to pursue) or at conversion prices greatly in excess of the historical prices of the Company’s common stock and reasonably expected prices of the Company’s common stock to be realized during the term of the Convertible Debentures. As a result, none of the Convertible Debentures have been or are expected to be converted in accordance with their conversion provisions. The contingent rights to convert for certain of the convertible debentures did not result in any underlying value attributable to the fair value of the embedded derivatives liabilities associated with respective Convertible Debentures. During May 2019, the Company and holders of the $100,000 Debentures agreed to convert the principal amount of the $100,000 Debentures plus interest accrued and unpaid through the date of the conversion totaling $100,622 into 3,773,584 shares of common stock of the Company (approximately $0.0267 per share representing a discount to the trading price of $0.0285 as of the effective date of the transaction). During June 2019, the Company and the holder of the $30,000 Debenture agreed to convert the principal amount of the $30,000 Debentures plus interest accrued and unpaid through the date of the conversion totaling $30,478 into 1,111,111 shares of common stock of the Company (approximately $0.0274 per share representing a premium to the trading price of $0.0253 as of the effective date of the transaction). As a result of the above conversions, the principal amount of Convertible Debentures outstanding as of July 31, 2019 was $220,000. These remaining Convertible Debentures were not repaid on their required maturity dates. On June 25, 2020, the Company entered into a settlement and general release agreement with the holder of the $50,000 Debenture whereby the Company is required to repay the balance of the $50,000 Debenture in eight monthly installments of $6,250 plus outstanding accrued interest beginning June 30, 2020 and ending on January 31, 2021. During October 2020, the Company and the holder of the $20,000 debenture (one of the two holders that participated in the $70,000 Debentures described above), agreed to convert the principal amount of the $20,000 debenture plus interest accrued and unpaid through the date of the conversion totaling approximately $20,100 into 160,000 shares of common stock of the Company (approximately $0.125 per share representing a discount to the trading price of $0.278 as of the effective date of the transaction). Unsecured Promissory Note On February 5, 2019, the Company entered into an unsecured loan agreement with a third party with a principal balance of $25,000. The outstanding principal was due March 8, 2019. The loan was not repaid on the maturity date as required. Credit Facility On September 19, 2019, the Company’s wholly owned subsidiary, General Surgical Florida, received $100,000 in connection with an unsecured line of credit (“Credit Facility”). The Credit Facility matures in one-year and the Company is required to make 52 weekly payments of $2,403 (payments totaling $125,000). The Credit Facility can be prepaid at any time by the Company. The effective annual interest rate of the facility based on 52 equal monthly payments is 45.67%. Proceeds received from the Credit Facility were used for working capital purposes. Mr. Iglesias provided a personal guaranty in connection with amounts required to paid under the Credit Facility. Capital Lease Obligations During March 2019, the Company entered into a lease agreement for certain lab equipment in the amount of $239,595. Under the terms of the lease agreement, the Company is required to make 60 equal monthly payments of $4,513 plus applicable sales taxes. Under the Lease Agreement, the Company has the right to acquire all of the leased equipment for $1.00. As a result, the lease agreement is being accounted for as a capital lease obligation. The annual interest rate charged in connection with the lease is 4.5%. The leased equipment are being depreciated over their estimated useful lives of 15 years. Funding Facility On October 10, 2019, the Company and an investor (“Noteholder”) agreed to a funding facility arrangement (“Funding Facility”) whereby the Noteholder was required to fund the Company an initial tranche of $100,000 on October 15, 2019 (“Initial Funding Date”) and had the option to fund the Company up to an aggregate of $500,000 (“Funding Facility Limit”) in minimum $100,000 monthly tranches by no later than February 15, 2020 (“Funding Expiration Date”). The Funding Facility matures on February 15, 2021 (“Maturity Date”) and accrues interest at 6.0% per annum. The Funding Facility, plus all accrued interest, automatically converts into 40,000,000 shares of newly issued common stock of the Company if the Noteholder funds the full $500,000 by the Funding Expiration Date. The Noteholder fully funded the Funding Facility as prescribed on February 12, 2020 and the Company converted the Funding Facility into 40,000,000 shares of common stock of the Company that were issued to the Noteholders designated entity, Republic Asset Holdings LLC. Mint Organics Inc. On June 22, 2017, Mint Organics entered into an unsecured loan agreement with a third party (“Third Party”) with a principal balance of $60,000, an annual interest rate of 10%, and all accrued and unpaid interest and outstanding principal are due on the one-year anniversary of the note. Interest expense for the three months ended July 31, 2019 and 2018 was $1,324 and $1,512, respectively. Interest expense for the nine months ended July 31, 2019 and 2018 was $4,349 and $4,537, respectively. The loan was not repaid on the maturity date as required. On May 1, 2019, the Company, Mint Organics and the Third party agreed to a settlement of the outstanding loan whereby the Company agreed to issue the Third Party 2,735,000 shares of newly issued common stock of the Company. At the time of the settlement, the outstanding obligation under the note, including late fees and penalties was approximately $72,568. The common stock issued was priced at |
10. Derivative Liabilities
10. Derivative Liabilities | 9 Months Ended |
Jul. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | NOTE 10 – DERIVATIVE LIABILITIES In connection with the sale of debt or equity instruments, the Company may sell options or warrants to purchase our common stock. In certain circumstances, these options or warrants may be classified as derivative liabilities, rather than as equity. Additionally, the debt or equity instruments may contain embedded derivative instruments, such as embedded derivative features which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability. The Company's derivative instrument liabilities are re-valued at the end of each reporting period, with changes in the fair value of the derivative liability recorded as charges or credits to income in the period in which the changes occur. For options, warrants and bifurcated embedded derivative features that are accounted for as derivative instrument liabilities, the Company estimates fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques. The valuation techniques require assumptions related to the remaining term of the instruments and risk-free rates of return, our current common stock price and expected dividend yield, and the expected volatility of our common stock price over the life of the instrument. The Company classifies the fair value of these securities under level three of the fair value hierarchy of financial instruments. The fair value of the derivative liability was calculated using a Monte Carlo Simulation model that values the liability of the Convertible Notes based on a risk neutral valuation where the price of the option is its discounted expected value. The technique applied generates a large number of possible (but random) price paths for the underlying (or underlyings) via simulation, and then calculate the associated conversion value (i.e. "payoff") of the note (limited by a percentage of trading volume) for each path. These payoffs are then averaged and discounted to the date of valuation resulting in the fair value of the option. In connection with the Sale, the underlying debt instrument associated with the derivative liability was paid in full without utilization of any of the conversion features associated with the debt instrument. During the nine months ended July 31, 2018, the Company recorded a gain of $265,597 associated with the change in fair value of the derivative liabilities from October 31, 2017. |
11. Irs Penalties
11. Irs Penalties | 9 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Irs Penalties | NOTE 11 — IRS PENALTIES The Company’s income tax returns for the periods since inception through the tax year ended October 31, 2015 were not filed with the Internal Revenue Service (“IRS”) until August 2017 (“Delinquent Filed Returns”). The Company’s income tax returns for the tax year ended October 31, 2016 were filed with the IRS during December 2017. In connection with the Delinquent Filed Returns, during the period September 2017 through October 2017, the Company received notices that it was being assessed approximately $90,000 of penalties, plus interest (“IRS Penalties”), in connection with the late filing certain information returns that were included as part of the Delinquent Filed Returns. In connection with the notices, the IRS indicated its intent to levy property of the Company if the IRS penalties were not paid as required. During January 2018, the Company requested from the IRS an abatement of the IRS penalties based on reasonable cause. During April 2018, the IRS notified the Company that the IRS penalties for the tax year ended 2011 of $20,000, plus interest, were abated and the request for abatement for the IRS penalties for the tax years ended 2012 – 2015 were denied. The Company is currently appealing the initial determination by the IRS to exclude the IRS penalties for the tax years 2012-2015 in its consideration of abatement. During the period that the appeal is being reviewed and a determination is made by the IRS, the IRS has agreed to put a hold on taking any levy action against the Company for the remaining amounts of the IRS Penalties that are still outstanding. In connection with the notices, the Company has accrued $70,000 of accrued tax penalties on the balance sheet as of July 31, 2019 and October 31, 2018. |
12. Capital Stock
12. Capital Stock | 9 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | NOTE 12 – CAPITAL STOCK Preferred Stock The Company is authorized to issue 10,000,000 shares of $0.001 par value preferred stock in one or more designated series, each of which shall be so designated as to distinguish the shares of each series of preferred stock from the shares of all other series and classes. The Company’s board of directors is authorized, without stockholders’ approval, within any limitations prescribed by law and the Company’s Articles of Incorporation, to fix and determine the designations, rights, qualifications, preferences, limitations and terms of the shares of any series of preferred stock. Series A Non-Convertible Preferred Stock On November 1, 2016, the Company filed a Certificate of Designation with the Secretary of State of Nevada therein designating out of the 10,000,000 authorized shares of Preferred Stock, a class of Preferred Stock as “Series A Non-Convertible Preferred Stock” consisting of 100 shares (the “ Series A Certificate of Designation “). On March 2, 2017, the Company filed with the Secretary of State of Nevada an amendment to increase the number of shares provided for in the Series A Certificate of Designation from 100 shares to 400 shares. Set forth below is a summary of the Series A Certificate of Designation, as amended. Voting Generally, the outstanding shares of Series A Non-Convertible Preferred Stock shall vote together with the shares of common stock and other voting securities of the Company as a single class and, regardless of the number of shares of Series A Non-Convertible Preferred Stock outstanding, and as long as at least one share of Series A Non-Convertible Preferred Stock is outstanding, such shares shall represent 80% of all votes entitled to be voted at any annual or special meeting of stockholders of the Company or action by written consent of stockholders. Each outstanding share of the Series A Non-Convertible Preferred Stock shall represent its proportionate share of the 80% which is allocated to the outstanding shares of Series A Non-Convertible Preferred Stock. Dividends The holders of shares of Series A Non-Convertible Preferred Stock shall not be entitled to receive any dividends. Ranking The Series A Non-Convertible Preferred Stock shall, with respect to distribution rights on liquidation, winding up and dissolution, (i) rank senior to any of the shares of common stock of the Company, and any other class or series of stock of the Company which by its terms shall rank junior to the Series A Non-Convertible Preferred Stock, and (ii) rank junior to any other series or class of preferred stock of the Company and any other class or series of stock of the Company which by its term shall rank senior to the Series A Non-Convertible Preferred Stock. So long as any shares of Series A Non-Convertible Preferred Stock are outstanding, the Company shall not alter or change any of the powers, preferences, privileges or rights of the Series A Non-Convertible Preferred Stock, without first obtaining the approval by vote or written consent, in the manner provided by law, of the holders of at least a majority of the outstanding shares of Series A Non-Convertible Preferred Stock, as to changes affecting the Series A Non-Convertible Preferred Stock. Issued Shares On November 1, 2016, the Company issued 100 shares of its Series A Non-Convertible Preferred Stock, par value $0.001 per share (“Series A Preferred Stock”) to the CEO. On March 8, 2017, the Company issued 100 shares of the Series A Preferred Stock, to each of the COO, CSO and CFO. In connection with an independent valuation using the “Market Approach”, the Company determined that the value attributable to the Series A Preferred Stock issued was nominal. On February 5, 2018, in connection with the COO’s resignation and termination, the COO agreed to forfeit and the cancellation of the 100 shares of the Series A Preferred Stock previously issued. Effective April 13, 2018, in connection with the Reorganization, the CEO, CFO and CSO each agreed to forfeit and the cancellation their 100 shares of the Series A Preferred Stock previously issued. On June 6, 2018, the Company approved resolutions to cancel and terminate the Series A Preferred Stock designation and file a certificate of amendment with the State of Nevada, withdrawing the designation of the Series A Preferred Stock. On June 14, 2018, the Company filed a Certificate of Withdrawal with the Secretary of State of Nevada thereby withdrawing and terminating all previously issued designations of the Company’s Series A Preferred Stock. As a result of the aforementioned actions, as of June 14, 2018, there were no designations of Series A Preferred Stock authorized or outstanding. Series B Convertible Preferred Stock On November 1, 2016, the Company filed a Certificate of Designation with the Secretary of State of Nevada therein designating out of the 10,000,000 authorized shares of Preferred Stock, a class of Preferred Stock as “Series B Convertible Preferred Stock” consisting of 1,000,000 shares (“Series B Certificate of Designation”). Set forth below is a summary of the Series B Certificate of Designation. Conversion Each holder of Series B Preferred Stock shall have the right, at such holder’s option, at any time or from time to time from and after the day immediately following the date the Series B Preferred Stock is first issued, to convert each share of Series B Preferred Stock into 20 fully-paid and non-assessable shares of common stock. Rank Except as specifically provided below, the Series B Preferred Stock shall, with respect to dividend rights, rights on liquidation, winding up and dissolution, rank junior to the Series A Non-Convertible Preferred Stock of the Company and senior to (i) all classes of common stock of the Company and (ii) any class or series of capital stock of the Company hereafter created (unless, with the consent of the holder(s) of Series B Preferred Stock). Issued Shares On June 6, 2018, the Company approved resolutions to cancel and terminate the Series B Preferred Stock designations and file a certificate of amendment with the State of Nevada, withdrawing the designation of the Series B Preferred Stock. On June 14, 2018, the Company filed a Certificate of Withdrawal with the Secretary of State of Nevada thereby withdrawing and terminating all previously issued designations of the Company’s Series B Preferred Stock. As a result of the aforementioned actions, as of June 14, 2018, there were no designations of Series B Preferred Stock authorized or outstanding. Common Stock On May 8, 2018, the Board adopted resolutions to (i) amend its Articles of Incorporation to reduce the number of authorized shares of common stock from 750,000,000 to 250,000,000 and (ii) reverse split the issued and outstanding shares of the Company’s common stock on a ratio of seventeen (17) current shares for one (1) share of new shares. On May 9, 2018, shareholders holding a majority in interest of the voting power of the Company (86.9%) approved the amendment and the reverse stock split. On June 1, 2018, the Company filed a Company-Related Action Notification with FINRA (“Notification Form”) to provide notice of certain proposed actions by the Company, including the amendment and reverse stock split. However, due to the Company’s delinquency its Exchange Act reports with the SEC at the time of the filing (by failing to file the October 31, 2017 Annual Report and its Quarterly Reports for the quarters ended January 31, 2018 and April 30, 2018, FINRA did not announce or effectuate the Name Change or Reverse Split in the marketplace. On June 18, 2018, the Company filed a Certificate of Correction with the Secretary of State of Nevada to reverse the amendments related to the Reverse Split. FINRA has since informed the Company that a new Issuer Company-Related Notification Form will be required to be submitted should the Company desire to effectuate the Name Change and Reverse Split in the future, provided the Company is current in its Exchange Act filings. At such time as FINRA processes the announcements, the Company will effect the reverse split of its common stock and amend its Articles to reduce its authorized common stock. On May 18, 2020 and May 19, 2020, pursuant to the Nevada Revised Statutes and the Bylaws of the Company, the Board of Directors of the Company and the stockholders having the voting equivalency of 50.30% of the outstanding capital stock, respectively, approved the filing of an amendment to the Articles of Incorporation of the Company to increase the authorized amount of common stock from 750,000,000 to 1,500,000,000, without changing the par value of the common stock or authorized number and par value of “blank check” Preferred Stock. On June 2, 2020, the Company filed a Definitive 14C with the SEC regarding the corporate action. On June 24, 2020, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada to effectuate the corporate action on June 24, 2020. Issuances of Common Stock - Sales: On March 7, 2019, the Company sold an aggregate of 7,500,000 shares of common stock and granted warrants to purchase an aggregate 2,000,000 common shares to three “accredited investors” investors. The warrants have exercise prices of $0.08, and have a one -year term. The aggregate grant date fair value of the warrants issued in connection with these issuances were $6,600. The proceeds were used for working capital. During April 2019, the Company sold 5,102,000 shares of common stock to seven “accredited investors” at $0.03 per share for an aggregate purchase price of $154,500. The proceeds were used for working capital. During July 2019, the Company sold 2,500,000 shares of common stock to one “accredited investors” at $0.02 per share for an aggregate purchase price of $50,000. The proceeds were used for working capital. During August 2019 through September 2019, the Company sold 5,250,000 shares of common stock to four “accredited investors” at $0.02 per share for an aggregate purchase price of $105,000. The proceeds were used for working capital. During November 2019 through January 2020, the Company sold 3,250,000 shares of common stock to three “accredited investors” at $0.02 per share for an aggregate purchase price of $65,000. The proceeds were used for working capital. During February 2020 through April 2020, the Company sold 11,050,000 shares of common stock to five “accredited investors” at $0.02 per share for an aggregate purchase price of $221,000. The proceeds were used for working capital. During April 2020 through May 2020, the Company sold 11,000,000 shares of common stock to Dr. Allen Meglin, a director of the Company at $0.02 per share for an aggregate purchase price of $220,000. During July and August 2020, the Company sold an additional 1,166,666 shares and 422,514 shares of common stock to Dr. Allen Meglin at $0.03 per share and $0.10 per share, respectively, for an aggregate purchase price of $77,251. The proceeds from all of the above sales were used for working capital. On April 27, 2020, the Company sold 5,000,000 shares of common stock to Republic Asset Holdings LLC., a Company controlled by Michael Carbonara, a director of the Company, at $0.02 per share for an aggregate purchase price of $100,000. The proceeds were used for working capital. During May 2020, the Company sold 3,000,000 shares of common stock to two “accredited investors” at $0.02 per share for an aggregate purchase price of $60,000. The proceeds were used for working capital. During July and August 2020, the Company completed the private placement to 19 accredited investors for the sale of 13,499,992 shares of Common stock of the Company at a selling price of $0.03 per share for an aggregate amount of $405,000 (“Sale”). In connection with the Sale, the Company agreed that all of the proceeds from the Sale are to be deposited into a separate bank account (“Sale Account”) of the Company and the proceeds are to be used exclusively to fund the costs associated with the Company’s ongoing public company filing requirements, including audit, tax, valuation and legal fees. The Company also agreed to maintain the Sale Account with a minimum cash balance of $25,000 at all times until such time that the Company has filed all required financial reports through the period ended July 31, 2021. During the period July 2020, the Company sold 1,000,000 shares of common stock to two “accredited investors”, at $0.02 per share and $0.03 per share, respectively for an aggregate purchase price of $25,000. The proceeds were used for working capital. During the period August 2020, the Company sold 8,606,665 shares of common stock to nine “accredited investors”, at prices ranging from $0.03 per share and $0.06 per share, for an aggregate purchase price of $392,100. The proceeds were used for working capital. During the period September 2020, the Company sold 4,800,000 shares of common stock to five “accredited investors”, at prices ranging from $0.06 per share and $0.10 per share, for an aggregate purchase price of $410,000. The proceeds were used for working capital. Issuances of Common Stock – Stock Compensation: On June 5, 2018, as further amended, the Company and a third party (“Consultant”) entered into a consulting agreement whereby the Consultant agreed to provide business development and other services to the Company (“Consulting Agreement”). The Consulting Agreement terminated on May 31, 2019. Under the terms of the Consulting Agreement, the Company agreed to grant the Consultant 4,500,000 shares of common stock of the Company (“Consultant Shares”). The Consultant Shares vested as follows; 1,700,000 shares upon execution of the Consultant Agreement; 1,700,000 shares on December 5, 2018; and 1,100,000 shares on January 1, 2019. The common stock was valued at $0.017 per share based on the closing price of the common stock of the Company on the execution date of the Consulting Agreement. The Company has recorded $45,900, $18,580 and $12,020 of stock-based compensation expense on June 5, 2018, December 5, 2018 and January 1, 2019 respectively. During September 2018, in consideration for agreeing to serve as the Company’s Chief Medical Officer (“CMO”) and render other medical consulting and advisory services to the Company, the Board approved the issuance to the CMO of 2,500,000 shares of unregistered common stock valued at $0.0138 per share, the closing price of the common stock of the Company on that date. The Company recorded $34,500 of stock-based compensation expense based on the grant date fair value of these shares during the year ended October 31, 2018. In connection with the CMO’s appointment to the Board of Directors of the Company during February 2019, during February 2019 and August 2019, the Board approved the issuance to the CMO of 2,000,000 and 3,000,000 shares, respectively, of unregistered common stock valued at $0.025 per share and $0.028 per share, respectively, the closing price of the common stock of the Company on the grant dates. The Company recorded $50,000 and $84,000, during the quarters ended April 30, 2019 and October 31, 2019, respectively, of stock-based compensation expense based fair value of these shares on the grant date. During the period November 1, 2018 through January 31, 2019, in consideration for agreeing to render medical consulting and advisory services to the Company, the Board approved the issuance to eight individuals an aggregate of 4,200,000 shares of unregistered common stock valued between $0.0055 and $0.0244 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $28,680 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended January 31, 2019. During the period February 1, 2019 through April 30, 2019, in consideration for agreeing to provide medical consulting and advisory services to the Company, the Board approved the issuance to seven individuals an aggregate of 1,750,000 shares of unregistered common stock valued between $0.024 and $0.049 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $55,500 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended April 30, 2019. During the period February 1, 2019 through April 30, 2019, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to nine individuals an aggregate of 225,000 shares of unregistered common stock valued between $0.0265 and $0.080 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $11,888 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended April 30, 2019. During the period May 1, 2019 through July 31, 2019, in consideration for agreeing to provide medical consulting and advisory services to the Company, the Board approved the issuance to twelve individuals an aggregate of 3,475,000 shares of unregistered common stock (of which 2,000,000 of the common stock issued shall vest over 36 months beginning July 2019) valued between $0.019 and $0.040 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $46,186 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended July 31, 2019. During the period May 1, 2019 through July 31, 2019, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to six individuals an aggregate of 2,675,000 shares of unregistered common stock valued between $0.023 and $0.040 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $70,725 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended July 31, 2019. During May 2019, the Company entered into a sales representation agreement (“Sales Rep Agreement”) with a third party (“Sales Representative”) to market, promote and sell the Company’s products. As part of the Sales Rep Agreement, the Company agreed to provide the Sales Representative 1,000,000 million shares of common stock of the Company upon execution of the Sales Rep Agreement (valued at $0.035 per share, the closing price of the common stock of the Company on that date). The Company recorded $35,000 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended July 31, 2019. The initial term of the Sales Rep Agreement was one year, subject to earlier termination as provided for in the Sales Rep Agreement. In addition, under the terms of the Sales Rep Agreement, the Sales Representative was entitled to receive performance incentives for up to 10,500,000 million additional shares of common stock of the Company based on the Sales Representative achieving certain future quarterly sales milestones. None of the performance incentive shares were earned by the Sales Representative. Effective September 30, 2019, the Sales Representative and the Company mutually agreed to terminate the Sales Rep Agreement. During the period August 1, 2019 through October 31, 2019, in consideration for agreeing to provide medical consulting and advisory services to the Company, the Board approved the issuance to two individuals an aggregate of 200,000 shares of unregistered common stock valued between $0.035 and $0.038 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $7,300 of stock-based compensation expense during the quarter ended October 31, 2019. During the period August 1, 2019 through October 31, 2019, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to four individuals an aggregate of 5,350,000 shares of unregistered common stock valued between $0.029 and $0.038 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $162,700 of stock-based compensation expense during the quarter ended October 31, 2019. In connection with the previous appointment of an independent member to the Board of Directors of the Company, during August 2019, the Board approved the issuance to the director of 5,000,000 shares of unregistered common stock valued at $0.028 per share, the closing price of the common stock of the Company on the grant date. The Company recorded $140,000 of stock-based compensation expense during the quarter ended October 31, 2019. As described in Note 14, upon execution of the VP Agreements, each of the Sales Executives were granted 1,000,000 shares of unregistered common stock of the Company valued at $0.035 per share, the closing price of the common stock of the Company on the grant date. The Company recorded $35,000 of stock-based compensation expense on the grant date for each issuance. The VP Agreements also provide each Sales Executives the right to receive an additional 750,000 shares of common stock at the end of each quarterly anniversary of the VP Agreements throughout the Initial Term (maximum 9,000,000 shares) (“Performance Shares”), provided that the VP Agreements remain in effect during the applicable quarterly period. As of September 30, 2020, each Sales Executive has vested an additional 2,250,000 Performance Shares (total 4,500,000). The Company will record stock-based compensation expense for each respective quarterly period that the Performance Shares vest of $52,500 (total $157,500). As described in Note 14, in connection with the execution of the Consultants Agreement, the Company issued to the Consultants 12,000,000 shares of unregistered common stock (“Shares”) valued at $0.022 per share, the closing price of the common stock of the Company on the grant date. The Company recorded a total of $264,000 of stock-based compensation expense based on the vesting of the Shares (50% of the Shares vest as of the Effective Date of the Consultants Agreement 50% of the Shares vest on the six-month anniversary of the Consultants Agreement). The Company recorded $132,000 of stock-based compensation expense on the grant date and $132,000 during the quarter ended October 31, 2020. During the period November 1, 2019 through January 31, 2020, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to three individuals an aggregate of 650,000 shares of unregistered common stock valued between $0.027 and $0.031 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $18,650 of stock-based compensation expense during the three months ended January 31, 2020. During the period February 1, 2020 through April 30, 2020, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to four individuals an aggregate of 2,725,000 shares of unregistered common stock valued between $0.029 and $0.034 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $89,650 of stock-based compensation expense during the three months ended April 30, 2020. During the period May 1, 2020 through July 31, 2020, in consideration for agreeing to provide lab and administrative consulting services to the Company, the Board approved the issuance to eight individuals an aggregate of 925,000 shares of unregistered common stock valued between $0.031 and $0.048 per share, the closing price of the common stock of the Company on the respective grants dates. For certain of the issuances, the stock vests on November 1, 2020, provided the recipient remains engaged with the Company during the period. The Company recorded $17,475 and $15,500 of stock-based compensation expense during the three months ended July 31, 2020 and on November 1, 2020, respectively. During April 2020, May 2020, and September 2020, in consideration for agreeing to provide medical consulting and advisory services to the Company, the Board approved the issuance to eight individuals an aggregate of 950,000 shares of unregistered common stock valued between $0.023 and $0.28 per share, the closing price of the common stock of the Company on the respective grants dates. The Company recorded $16,100, $6,900 and $56,600 of stock-based compensation expense based on the grant date fair value of these shares during the quarters ended April 30, 2020, July 31, 2020 and October 31, 2020, respectively. During February 2020, in recognition of past services provided to the Company through February 2020, the Board approved the issuance to the CMO of 5,000,000 shares of unregistered common stock valued at $0.028 per share, the closing price of the common stock of the Company on the grant date. The Company recorded $140,000 of stock-based compensation expense during the quarter ended April 30, 2020 based on the fair value of these shares on the grant date. In connection with the resignation of an independent member of the Board of Directors of the Company in April 2020, the Board approved the issuance to the director of 736,808 shares of unregistered common stock valued at $0.022 per share, the closing price of the common stock of the Company on the grant date. The Company recorded $16,210 of stock-based compensation expense during the quarter ended April 30, 2020 based on the fair value of these shares on the grant date. In connection with an agreement with an independent distributor dated May 28, 2020, the Company agreed to grant the distributor 3,000,000 shares of unregistered common stock valued at $0.115 per share, the closing price of the common stock of the Company on the grant date. The Company recorded $345,000 of stock-based compensation expense during the quarter ended July 31, 2020 based on the fair value of these shares on the grant date. In addition, the distribution agreement also provides for future stock incentives based on future sales that are generated by the distributor based on a conversion price equal to 75% of the trading price of the common stock on the last day of the month in which the incentive was earned. On May 15, 2020 (“Effective Date”), the Company entered into an advisor agreement with a third party (“Advisor”) whereby the Advisor will provide financial advisory services (see Note 14). As consideration, the Company agreed to issue the Advisor 1,000,000 shares of common stock (“Grant”), of which 250,000 shares shall be fully vested as of the Effective Date, 250,000 shares vest on the sixth month anniversary of the Effective Date, 250,000 shares vest on the ninth month anniversary of the Effective Date and 250,000 shares vest on the twelfth month anniversary of the Effective Date, provided however that the Agreement is in full effect during such vesting period(s) for the respective portion of the Grant. In addition, Company agreed to grant 3-year warrants to the Advisor to purchase 6,000,000 shares of common stock of the Company at a purchase price of $0.04 per share (“Warrants”), of which Warrants to purchase 2,000,000 unrestricted shares shall be vested upon the Effective Date of the agreement and 2,000,000 and 2,000,000 of the remaining Warrants shall vest on the eighteenth month and thirtieth month anniversary of the Effective Date of the agreement, respectively, provided however that the Agreement is renewed and in full effect during the applicable vesting period(s) for the respective portion of the grant. Notwithstanding the above, any unvested Grant or Warrants prescribed above will immediately become vested shares if (a) the Company concludes a transaction involving any of the entities introduced by Advisor based on a transaction value greater than $5MM or (b) the Company completes any transaction that results in a change in control or any financing transaction with an aggregate value of at least $25MM. The Grant shares were valued at $0.04 per share, the closing price of the common stock of the Company on the grant date. The Company will record $10,000 of stock-based compensation expense during each quarter in which the Grant shares become vested based on the fair value of these vested shares on the grant date. During July 2020, the Company entered into a consulting agreement with a third party to provide investment banking related consulting services for a minimum period of six months. As consideration for agreeing to provide consulting services to the Company, the Company issued the consultant 5,000,000 shares of unregistered common stock valued at $0.05 per share, the closing price of the common stock of the Company on the effective date of the agreement. All of the shares granted vested immediately on the date of issuance. The Company recorded $250,000 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended July 31, 2020. During August 2020, the Company entered into two separate consulting agreements with third parties to provide marketing and public relations services for a minimum period of six months. As consideration for agreeing to provide consulting services to the Company, the Company issued the consultants 300,000 shares and 25,000 shares, respectively, of unregistered common stock valued at $0.127 per share, the closing price of the common stock of the Company on the effective date of the agreements. The Company recorded a total of $40,790 of stock-based compensation expense based on the grant date fair value of these shares during the quarter ended October 31, 2020. Issuances of Common Stock – Exercise of warrants, Conversion of Debt and Exchanges: During May 2019, the Company and holders of the $100,000 Debentures agreed to convert the principal amount of $100,000 Debentures plus interest accrued and unpaid through the date of the conversion totaling $100,622 into 3,773,584 shares of common stock of the Company (approximately $0.0267 per share representing a discount to the trading price of $0.0285 as of the effective date of the transaction). During June 2019, the Company and the holder of the $30,000 Debenture agreed to convert the principal amount of the $30,000 Debenture plus interest accrued and unpaid through the date of the conversion totaling $30,478 into 1,111,111 shares of common stock of the Company (approximately $0.0274 per share representing a premium to the trading price of $0.0253 as of the effective date of the transaction). On May 1, 2019, the Company and Mint Organics entered into an exchange agreement whereby the Company agreed to acquire the 150 shares of Mint Series A Preferred Stock and the 150,000 warrants to purchase shares of common stock of the Company originally issued to Mr. Wayne Rohrbaugh in connection with the initial capitalization of Mint Organics (see note 15) in exchange for 4,400,000 shares of common stock of the Company (approximately $0.034 per share representing a discount to the trading price of $0.049 as of the effective date of the transaction). On May 1, 2019, the Company, Mint Organics and the holder of a promissory note issued by Mint Organics (see note 15) agreed to a settlement of the outstanding loan whereby the Company agreed to issue the holder of the note 2,735,000 shares of newly issued common stock of the Company. At the time of the settlement, the outstanding obligation under the note, including late fees and penalties was approximately $72,568. The common stock issued was priced at On May 1, 2019, the Company and Mint Organics Florida entered into an exchange agreement whereby the Company agreed to acquire the 21.25 units from the minority equity holder of Mint Organics Florida (see note 15) in exchange for 2,400,000 shares of common stock of the Company (approximately $0.042 per share representing a discount to the trading price of $0.049 as of the effective date of the transaction). As more fully described in Note 9, the Noteholder fully funded the Funding Facility as prescribed on February 12, 2020 and the Company converted the Funding Facility into 40,000,000 shares of common stock of the Company (approximately $0.013 per share representing a discount of 60.5% to the trading price of $0.032 as of the effective date of the transaction). During October 2020, the Company a |
13. Warrants
13. Warrants | 9 Months Ended |
Jul. 31, 2019 | |
Warrants | |
Warrants | NOTE 13 – WARRANTS A summary of warrant activity for the nine months ended July 31, 2019 and 2018 are presented below. Number of Weighted-average Remaining Aggregate Outstanding at October 31, 2018 3,687,484 $ 0.41 1.14 $ – Granted 2,000,000 $ 0.08 1.00 $ – Exercised – $ – – $ – Expired/Forfeited (572,400 ) $ 0.59 0.15 $ – Outstanding and exercisable at July 31, 2019 5,115,084 $ 0.26 0.50 $ – Number of Weighted-average Remaining Aggregate Outstanding at October 31, 2017 158,137,484 $ 0.05 9.02 $ – Granted – $ – – $ – Exercised 77,300,000 $ 0.04 8.45 $ – Expired/Forfeited 77,150,000 $ 0.04 8.42 $ – Outstanding and exercisable at July 31, 2018 3,687,484 $ 0.41 1.39 $ – In connection with the Sale of ANU assets on February 5, 2018, and the immediate resignation and termination of the Company’s Chief Operating Officer, the Chief Operating Officer agreed to forfeit 53,300,000 warrants to purchase shares of the Company’s common stock held at the time of the resignation and the Company agreed to grant the Chief Operating Officer 7,500,000 shares of newly issued common stock of the Company. In connection with the Sale of ANU assets on February 5, 2018, and the immediate resignation and termination of the Company’s Chief Technology Officer, the Chief Technology Officer agreed to forfeit 23,850,000 warrants to purchase shares of the Company’s common stock held at the time of the resignation and the Company agreed to grant the Chief Technology Officer 7,500,000 shares of newly issued common stock of the Company. In connection with the amendment to the Chief Financial Officer’s employment agreement on April 6, 2018, the terms of the 31,800,000 and 21,500,000 warrants to purchase common shares of the Company previously granted to the Chief Financial Officer described above were modified to provide that in the event of an occurrence of a change in control or termination of the employment (as defined in the agreement), pursuant to the terms thereof, the exercise price for all outstanding warrants granted to the Chief Financial Officer to purchase common stock of the Company during the term of his employment agreement shall be reduced to $0.001 per share. The Company valued the repricing of the warrants based on the date of the modification using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 2.58%, (2) remaining term of 8.6 years - 8.9 years, (3) expected stock volatility of 68%, and (4) expected dividend rate of 0%. The grant date fair value of the modified warrants originally issued during November 2016 and March 2017 was $318,000 and $215,000, respectively. The Company recorded the expense for the total amount associated with modification of $533,000 at the time of the Reorganization, the event which triggered the vesting provision associated with the modification (see Note 5). In connection with the amendment to the Chief Science Officer’s employment agreement on April 6, 2018, the terms of the 10,000,000 and 13,850,000 warrants to purchase common shares of the Company previously granted to the Chief Science Officer described above were modified to provide that in the event of an occurrence of a change in control or termination of the employment (as defined in the agreement), pursuant to the terms thereof, the exercise price for all outstanding warrants granted to the Chief Science Officer to purchase common stock of the Company during the term of her employment agreement shall be reduced to $0.001 per share. The Company valued the repricing of the warrants based on the date of the modification using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 2.58%, (2) remaining term of 8.6 years - 8.9 years, (3) expected stock volatility of 68%, and (4) expected dividend rate of 0%. The grant date fair value of the modified warrants originally issued during November 2016 and March 2017 was $100,000 and $138,500, respectively. The Company recorded the expense for the total amount associated with modification of $238,500 at the time of the Reorganization, the event which triggered the vesting provision associated with the modification (see Note 5). In connection with the Reorganization, The CFO and CSO each agreed to exercise on a cashless basis all of their warrants to purchase 53,300,000 and 23,850,000 shares of common stock of the Company, respectively. Based on the closing price of the Company’s common stock on the Effective Date of $0.012 per share and the warrant exercise price of $0.001 per share, the CFO and CSO were required to use 4,675,439 and 2,092,105 shares of common stock received from the exercise of the warrants, respectively, to pay for the exercise price for exercising all of the warrants. On March 7, 2019, the Company issued 2,000,000 warrants in connection with common stock offerings and valued the warrants on the dates of the grant using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 2.44%, (2) term of 1 year, (3) expected stock volatility of 108%, and (4) expected dividend rate of 0%. All of the warrants vested immediately. The grant date fair value of the warrants issued was $6,600. On February 26, 2020, the Company issued the CFO a cashless warrant to purchase an aggregate of 7,500,000 shares of common stock in connection with the CFO’s employment agreement. The warrant is exercisable for $0.028 per share (the closing price of the Company’s common stock on the date of grant, until the tenth anniversary date of the date of issuance. The Company valued the warrants on the dates of the grant using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 1.14%, (2) term of 4 years, (3) expected stock volatility of 87%, and (4) expected dividend rate of 0%. All of the warrants vested immediately. The grant date fair value of the warrants issued was $214,500. The Company will record $214,500 of stock-based compensation expense during the quarter ended April 30, 2020 based on the fair value of these warrants on the grant date. On May 15, 2020 (“Effective Date”), the Company granted the Advisor warrants to purchase 6,000,000 shares of common stock of the Company at a purchase price of $0.04 per share (“Warrants”) and exercisable for three years from the Effective Date. Warrants to purchase 2,000,000 shares shall be vested upon the Effective Date of the agreement and 2,000,000 and 2,000,000 of the remaining Warrants shall vest on the eighteenth month and thirtieth month anniversary of the Effective Date of the agreement, respectively, provided however that the agreement is renewed and in full effect during the applicable vesting period(s) for the respective portion of the grant. Notwithstanding the above, any unvested Warrants prescribed above will immediately become vested if (a) the Company concludes a transaction involving any of the entities introduced by Advisor based on a transaction value greater than $5,000,000 or (b) the Company completes any transaction that results in a change in control or any financing transaction with an aggregate value of at least $25,000,000. The Company valued the warrants on the dates of the grant using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 0.31%, (2) term of 3 years, (3) expected stock volatility of 90%, and (4) expected dividend rate of 0%. The grant date fair value of the warrants issued was $121,200. The Company will record $40,400 of stock-based compensation expense during the period that the Grant shares vest based on the fair value of these warrants on the grant date (see Note 14). |
14. Commitments and Contingenci
14. Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 – COMMITMENTS AND CONTINGENCIES Executive Employment Agreements Effective November 4, 2016, the Company entered into executive employment agreements with Albert Mitrani, Dr. Maria Mitrani, Bruce Werber, and Ian Bothwell. On March 8, 2017, the Company entered into an executive employment agreement with Terrell Suddarth, and amended the employment agreements of Dr. Mitrani, Dr. Werber and Mr. Bothwell. On February 5, 2018, Dr. Werber’s and Mr. Suddarth’s’ employment agreements were terminated in connection with the Sale. On April 6, 2018, the Company amended Mr. Bothwell’s and Dr. Mitrani’s employment agreement, which provided among other things, that in the event of an occurrence of a change in control or termination of the employment (as defined in agreement) pursuant to the terms thereof, the exercise price for all outstanding warrants granted to Mr. Bothwell and Dr. Mitrani to purchase common stock of the Company during the term of the agreement shall be reduced to $0.001 per share. In addition, Mr. Bothwell’s employment agreement was amended to increase the initial term and the automatic renewal term provided for in the employment agreement from three years to five years, increased the amount of automobile expense allowance and removed the cap for the reimbursement of office related expenses. Collectively, the aforementioned executive employment agreements are referred to as the FY 2017 Executive Employment Agreements. In connection with Sale (see Note 4), Werber and Suddarth each entered into a Separation and General Release Agreement with the Company effective upon the closing of the Sale which provided for the immediate resignation of Werber and Suddarth of all their respective executive and Board of Director positions held with the Company and/or any of the Company’s subsidiaries, and the termination and settlement of all obligations of each party to the other pursuant to the respective employment agreements, including the release of all rights the Company may have held in any intellectual property of Werber and Suddarth and any non-compete restrictions on Werber and Suddarth. In connection with such releases, Werber and Suddarth each agreed to forfeit all warrants previously granted and outstanding (a total of 77,150,000 warrants to purchase shares of common stock of the Company), forfeit any and all accrued and unpaid amounts owing under the employment agreements for past due wages, benefits, severance obligations, unreimbursed expenses and any other obligations owing to one another as of the date of the Sale totaling $906,515 in exchange for a grant of 7,500,000 shares of restricted common stock of the Company to each of Werber and Suddarth (the grant date fair value of the newly issued shares issued to each of Werber and Suddarth was $83,250). In connection with the Reorganization, Mr. Mitrani’s, Dr. Mitrani’s and Mr. Bothwell’s FY 2017 Executive Employment Agreements were terminated in favor of newly executed employment agreements (collectively referred to as the April 2018 Executive Employment Agreements). In addition, as a condition of the Reorganization, Mr. Mitrani, Mr. Bothwell and Dr. Mitrani each agreed to release the Company for all amounts owed to them for unpaid salaries through the Effective Date and unpaid advances and/or expenses incurred prior to December 31, 2017 totaling $1,636,808. This amount is reflected in stockholders’ deficit for the year ended October 31, 2018. The significant terms provided for in the FY 2017 Executive Employment Agreements and the April 2018 Executive Employment Agreements are summarized below: April 2018 Executive Employment Agreements General Pursuant to Albert Mitrani’s April 2018 Executive Employment Agreement, Mr. Mitrani serves as the Company’s President and Chief Operating Officer. Mr. Mitrani’s base annual salary is $162,500, which shall accrue commencing on the Effective Date and shall be payable in equal semi-monthly installments, commencing May 1, 2018, in arrears. The base salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to, increase the base salary during the Employment Term. Mr. Mitrani is also entitled to a commission on all sales attributable to him (i.e., excluding existing customers of the Company at the time of the Reorganization) at the rate of five percent (5%) of the "Net Sales" as defined in the agreement and an expense allowance of $5,000 per month. Pursuant to Ian Bothwell’s April 2018 Executive Employment Agreement, Mr. Bothwell continues to serve as the Company’s Chief Financial Officer. Mr. Bothwell’s base annual salary is $162,500, which shall accrue commencing on the Effective Date and shall be payable in equal semi-monthly installments, commencing May 1, 2018, in arrears. The base salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to, increase the base salary during the Employment Term. Mr. Bothwell has not been paid salary since July 2018. Pursuant to Dr. Maria I. Mitrani’s April 2018 Executive Employment Agreement, Dr. Mitrani continues to serve as the Company’s Chief Science Officer. Dr. Mitrani’s base annual salary is $162,500, which shall accrue commencing on the Effective Date and shall be payable in equal semi-monthly installments, commencing May 1, 2018, in arrears. The base salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to, increase the base salary during the Employment Term. Term The term of each of the April 2018 Executive Employment Agreements commences as of the Effective Date and continues until December 31, 2020 (Mr. Bothwell) or December 31, 2023 (Mr. Mitrani and Dr. Mitrani) (“Initial Term”), unless terminated earlier pursuant to the terms of the April 2018 Executive Employment Agreement; provided that Unpaid Advances The Company was required to repay the unpaid advances subsequent to December 31, 2017, and the unreimbursed expenses incurred subsequent to December 31, 2017, on May 15, 2018. Fringe Benefits and Perquisites During the Employment Term, each Executive shall be entitled to fringe benefits and perquisites consistent with the practices of the Company, and to the extent the Company provides similar benefits or perquisites (or both) to similarly situated executives of the Company. Termination The Company may terminate the April 2018 Executive Employment Agreement at any time for good cause, as defined in the April 2018 Executive Employment Agreement, including, the Executive’s death, disability, Executive’s willful and intentional failure or refusal to follow reasonable instructions of the Company’s Board of Directors, reasonable and material policies, standards and regulations of the Company’s Board of Directors or management. Amendments To The April 2018 Executive Employment Agreements February 26, 2020 Amendment 1. On February 26, 2020, the Company agreed to modify the employment agreement of Mr. Ian T. Bothwell, the Company’s Chief Financial Officer to provide Mr. Bothwell with: a) an extension to his employment agreement dated April 13, 2018 from December 2020 to December 2023 consistent with other executives of the Company; and b) and a one-time bonus in the form of a fully vested cashless warrant to purchase 7,500,000 shares of common stock of the Company, exercisable for ten years at an exercise price of $0.28 per share, the closing price of the common stock on the date of the grant. 2. On February 26, 2020, pursuant to the respective employment agreements with each of the Company’s executive officers, the Board granted each of Mr. Albert Mitrani, Dr. Maria Mitrani and Mr. Ian Bothwell a cash bonus of $37,500 for the calendar year ended December 31, 2019. April 25, 2020 Amendment On April 25, 2020, the Company agreed to amend and revise the each of Albert Mitrani, Ian Bothwell and Dr. Maria I. Mitrani, (individually each of A. Mitrani, Bothwell and Dr. Mitrani are referred to as an “Executive” and collectively the “Executives”) April 2018 Executive Employment Agreements. The primary amended terms associated with the agreements for each Executive were substantially similar and consisted of the following: Term: An extension to the term of the employment agreements dated April 13, 2018 from December 31, 2023 to December 31, 2025. Base Salary: An increase in base annual salary from $162,500 to $300,000. The amended salary amount of $300,000 shall be retroactively adjusted to commence as of January 1, 2019. The increased annual salary of $137,500 (“Incremental Salary”) over the prior annual salary amount of $162,500 (“Original Base Salary”) shall only be paid only upon there being sufficient available cash. Beginning July 1, 2020, at the sole option of the Executive, any portion of unpaid Original Base Salary for periods after January 1, 2020, including unpaid bonus salary, may be converted by Executive into common stock at a conversion rate equal to the average trading price during the month in which the accrued salary pertains. For any unpaid Original Base Salary that existed prior to January 1, 2020, including unpaid bonus salary, the amounts may be converted at a conversion price using the closing trading price of the stock on the last trading day in December 2019. Beginning December 1, 2020, at the sole option of the Executive, all unpaid Incremental Salary for periods after January 1, 2020 may be converted by the Executive into common stock at a conversion rate equal to the average trading price during the month in which the accrued salary pertains. For any unpaid Incremental Salary that existed prior to January 1, 2020, the amounts may be converted at a conversion price using the closing trading price of the stock on the last trading day in December 2019. Until such time as the Executive elects to convert, the accrued and unpaid salary, including Original Base Salary and Incremental Salary shall remain an obligation of the Company. Severance Provisions: 1. Company termination without cause, Executive for good reason: a) All existing accrued obligations existing at time of termination shall be paid to Executive. b) Any unvested equity grants in favor of Executive shall immediately become fully vested and any pending grants pursuant to the MCPP eligible to be issued to Executive shall be granted to Executive, regardless of whether the associated milestone were achieved prior to termination, c) Executive shall be entitled to a cash payment equal to his unpaid base salary for the remaining term in effect at time of the time of the termination or an amount equal to four times (4x's) the base salary in effect at the time of termination, whichever is greater, d) Executive shall be entitled to a cash payment equal to his 200% of the prior year’s cash or stock bonus (excluding any stock grants received pursuant to the MCPP). 2. Change In Control: In the event of a Change in Control and the Executive’s employment agreement is not extended for period of five years from the date of the Change in Control with all other terms and conditions of the agreement remaining the same, then the Executive may terminate the agreement for good reason and all respective severance terms as provided for a termination by Executive for good reason described in clause 1 above shall be provided to Executive. 3. Executive termination due to disability, death, or non-renewal by Company: a) All existing accrued obligations existing at time of termination shall be paid to Executive. b) Any unvested equity grants in favor of Executive shall immediately become fully vested and any pending grants pursuant to the MCPP eligible to be issued to Executive shall be granted to Executive, regardless of whether the associated milestone were achieved prior to termination. c) Executive shall be entitled to a cash payment equal to 299% of Executive’s base salary in effect at the time of termination, plus a gross up amount to cover Executive’s tax liability associated with such payment. d) 200% of the prior years cash or stock bonus (excluding MCPP performance stock grants). June 29, 2020 Amendment On June 29, 2020, the board of directors of the Company (“Board”) agreed to further amend and revise the April 2018 Executive Employment Agreements for each of Executives. The primary amended terms associated with the agreements for each Executive were substantially similar and consisted of the following: Base Salary: An increase in the Executives annual base annual salary upon such time that the Company achieves monthly revenues in the amounts provided below, provided such monthly revenue increase occurs for four consecutive months. Upon the achievement of the defined salary milestone, the salary adjustment will be retroactive to the first month in which the salary threshold was met. Any adjustment pursuant to this provision shall not be reduced for any future reduction in revenues that may occur. Monthly Revenues Base Salary $ 1.00 $ 130,000 $ 1.50 $ 200,000 $ 2.00 $ 275,000 $ 3.50 $ 630,000 $ 5.00 $ 900,000 Coordinator Agreement Effective September 30, 2019, the Sales Representative and the Company mutually agreed to terminate the Sales Rep Agreement in exchange for the principal executive of the Sales Representative (“Coordinator”) agreeing to become an employee of the Company effective October 1, 2019 (“Coordinator Agreement”). The Coordinator Agreement provided that the parties would seek to negotiate in good faith a definitive employment agreement. The parties did not executive a definitive agreement and the Coordinator is no longer providing services to the Company. Advisor Agreement Effective May 15, 2020 (“Effective Date”), the Company entered into a one-year agreement (“Advisor Agreement”) with an individual to provide financial advisory services to the Company (“Advisor”). The Advisor Agreement is subject to successive, automatic one (1) year extensions unless either party has given the other 30- day written notice prior to the expiration of then in effect termination date, of their desire not to renew the Advisor Agreement. As the compensation for Advisor’s services and his fulfillment of all obligations under the agreement the Company agreed to issue the Advisor 1,000,000 shares of common stock (“Stock Grant”), of which 250,000 shares shall be fully vested as of the Effective Date, 250,000 shares vest on the sixth month anniversary of the Effective Date, 250,000 shares vest on the ninth month anniversary of the Effective Date and 250,000 shares vest on the twelfth month anniversary of the Effective Date, provided however that the Advisor Agreement is in full effect during such vesting period(s) for the respective portion of the Stock Grant. In addition, Company agreed to grant 3-year warrants to the Advisor to purchase 6,000,000 shares of common stock of the Company at a purchase price of $0.04 per share (“Warrants”), of which Warrants to purchase 2,000,000 unrestricted shares shall be vested upon the Effective Date of the Advisor Agreement and 2,000,000 and 2,000,000 of the remaining Warrants shall vest on the eighteenth month and thirtieth month anniversary of the Effective Date of the Advisor agreement, respectively, provided however that the Advisor Agreement is in full effect during the applicable vesting period(s) for the respective portion of the grant. Notwithstanding the above, any unvested Stock Grant or Warrants prescribed above will immediately become vested shares if (a) the Company concludes a transaction involving any of the entities introduced by Advisor based on a transaction value greater than $5,000,000 or (b) the Company completes any transaction that results in a change in control or any financing transaction with an aggregate value of at least $25,000,00. The Advisor Agreement may be terminated by the Company based on Advisor’s breach of any of the terms of the Advisor Agreement, the Company’s determination that Advisor is not meeting the desired objectives or if either party provides notice of the desire not to renew the Advisor Agreement upon expiration. Sales Executives On January 6, 2020, the Company entered into employment agreements with two individuals (“Sales Executives”), each to serve as a Vice President – Global Sales and Marketing. The terms of each Sales Executive employment agreement are identical (“VP Agreements”). The initial term of the VP agreements are for three years and provide for automatic annual renewals thereafter, unless either party provides 90-day written notice prior to expiration of the then current term. The VP Agreements may also be terminated by the Company beginning June 30, 2020 in the event the Sales Executive fails to meet certain defined minimum revenue growth milestones. The Sales Executives will receive compensation in the form of monthly salary of $18,000 and a quarterly override based on revenues earned by the Company during a quarterly period that exceed $600,000 beginning for the quarter ended June 30, 2020. In addition, upon execution of the Agreement, each of the Sales Executives were granted 1,000,000 shares of unregistered common stock of the Company valued at $0.035 per share, the closing price of the common stock of the Company on the grant date. The Company will record $35,000 of stock-based compensation expense on the grant date for each issuance. The VP Agreements also provide the Sales Executives with the right for each to receive an additional 750,000 shares of common stock at the end of each quarterly anniversary of the VP Agreements throughout the Initial Term (maximum 9,000,000 shares) (“Performance Shares”), provided that the VP Agreements remain in effect during the applicable quarterly period. The vesting of the Performance Shares may also be accelerated based on achievement of certain revenue milestones. The Company will record stock-based compensation expense for each respective quarterly period that the Performance Shares vest of $52,500. Consultants Agreement Effective March 30, 2020 (the “Effective Date”), the Company entered into a consulting agreement (“Agreement”) with Assure Immune L.L.C. (the “Consultant”) for an initial term of one year (the “Initial Term”) with automatic renewals for two (2) additional annual periods (each a “Renewal Term,” and together with the “Initial Term,” the “Term”), unless written notice is provided by either party at least 45 days prior to the applicable termination date. Under the Agreement, the Consultant will provide the Company during the Term with expertise, experience, advice and direction associated with the critical functional executive level roles of the Company as it relates to the oversight and management of the Company’s regulatory, research and development and laboratory operations, consistent with the Company’s corporate mission and strategies and subject to the resource limitations of the Company. In connection with the Agreement, the Consultants will receive monthly fees of $30,000 during the Initial Term and monthly consulting fees of $35,000 and $40,000 the first and second Renewal Terms, if any. In addition. the Company agreed to issue to the Consultant or its designees 12,000,000 shares of common stock of the Company (“Shares”), 50% of which Shares vest as of the Effective Date and balance of which Shares vest upon the six-month anniversary of the Effective Date. The Agreement also provides that upon the commencement of each Renewal Term, if any, the Consultant will receive up to 6,000,000 additional Shares, 50% of which Shares will vest on the commencement date of the Renewal Term and the balance of which additional Shares will vest on the six (6) month anniversary of such date. In connection with the Agreement, the Consultant (and its principals ) In addition to the Shares to be issued above, the Consultant or its designees will be entitled to participate in the Company’s Management and Consultants Performance Stock Plan (the “MCPP”), more fully described in Note 12. Pursuant to the MCPP, the Consultant or its designees may be awarded up to 33,000,000 Shares, based on the achievement of certain defined operational performance milestones (“Milestones”) during the Term of the Agreement and for a period of twelve (12) months after the expiration or earlier termination of the Agreement, provided that expiration or termination is not for “cause” or the Consultant’s non-renewal of the Agreement. Leases Lab Facilities: Anu Life Sciences, Inc. Anu Life Sciences Inc. a Florida corporation (“ANU”), entered into a five-year lease agreement (“Lab Lease”) for an approximately 3,500 square foot laboratory and administrative office facility in Sunrise, Florida. The Lab Lease was effective July 1, 2017 and was to expire on June 30, 2022. As described in Note 4, in connection with the Sale, ANU sold or transferred to Vera its right, title and interest in the Lab Lease (including the associated security deposits of $37,275) and all leasehold improvements. The minimum monthly lease payments under the Lab Lease, excluding applicable Florida sales tax and additional rents as may be required under the terms of the Lab Lease, were approximately $7,900 for the first 24 months and $9,000 per month, $9,200 per month and $9,400 per month for the third, fourth and fifth years, respectively. Minimum lease payments commenced July 1, 2017. The Company recorded lease expense on a straight-line basis over the life of the lease. The Company recorded lease expense in connection with the Lab Lease of $25,803 for the period November 1, 2017 through February 5, 2018. 2019 Lab Facility: In connection with the Company’s decision to again operate a placental tissue bank processing laboratory in Miami, Florida, during February 2019, the Company entered into a renewable month to month lease agreement (“Miami Lab Lease”) for an approximately 450 square foot laboratory and a 100 square foot administrative office facility. Monthly lease payments are approximately $5,200 plus administrative fees and taxes. In connection with the Miami Lab Lease, the Company was required to post a security deposit of $6,332. Effective March 2019, the Company entered into an agreement to lease certain manufacturing equipment (“Equipment Lease”) to be used in its lab, including a full care maintenance plan for such equipment totaling approximately $239,595. The lease agreement is for five years and requires minimum monthly lease payments of approximately $4,513 per month, plus sales taxes. Administrative Office: The Company’s corporate administrative offices are leased from MariLuna, LLC, a Florida limited liability company which is owned by Dr. Mitrani. The term of the lease runs through June 2023 and the monthly rental rate through June 2020 is $2,900 and thereafter $3,500. Preparation of IRB, Pre-IND, IND Protocols for Clinical Applications and Clinical Trial Initiation and Monitoring: In connection with the Company’s ongoing research and development efforts and the Company’s efforts to meet compliance with current and anticipated United States Food and Drug Administration (“FDA”) regulations expected to be enforced beginning in May 2021 pertaining to marketing traditional biologics and human cells, tissues and cellular and tissue based products that fall under Section 351 of the Public Health Services Act (“HCT/Ps”), the Company has applied for and received Investigation New Drug (“IND”) approval from the FDA to commence clinical trials in connection with the use of the Company’s products and related treatment protocols for specific indications. The ability to successfully complete the above efforts will be dependent on the Company’s ability to timely fund the required payments and complete the applicable clinical trials, which is subject to available working capital generated from operations, financing arrangements with the third party vendors involved in the studies and/or from additional debt and/or equity financings as well as ultimate approval from the FDA. Contingent Convertible Obligations Into Equity Securities Private Placement Of Convertible 6% Debentures As more fully described in Note 9, the remaining outstanding Convertible Debentures (the principal and all accrued but unpaid interest thereon) contained provisions that under certain conditions, provided the ability of the holders of the Convertible Debentures at their option at any time, from time to time to convert into shares of the common stock of the Company. The conversion prices were based on the Company completing a contemplated pending reverse split at the Company’s sole discretion (which the Company elected not to pursue) or at conversion prices greatly in excess of the historical prices of the Company’s common stock and reasonably expected prices of the Company’s common stock to be realized during the term of the Convertible Debentures. As a result, none of the Convertible Debentures have been or are expected to be converted in accordance with their conversion provisions. The contingent rights to convert for certain of the convertible debentures did not result in any underlying value attributable to the fair value of the embedded derivatives liabilities associated with respective Convertible Debentures. Obligations Due Under Executive Employment Agreements Beginning July 1, 2020, at the sole option of the Executive, any portion of unpaid Original Base Salary for periods after January 1, 2020, including unpaid bonus salary, may be converted by Executive into common stock at a conversion rate equal to the average trading price during the month in which the accrued salary pertains. For any unpaid Original Base Salary that existed prior to January 1, 2020, including unpaid bonus salary, the amounts may be converted at a conversion price using the closing trading price of the stock on the last trading day in December 2019. Beginning December 1, 2020, at the sole option of the Executive, all unpaid Incremental Salary for periods after January 1, 2020 may be converted by the Executive into common stock at a conversion rate equal to the average trading price during the month in which the accrued salary pertains. For any unpaid Incremental Salary that existed prior to January 1, 2020, the amounts may be converted at a conversion price using the closing trading price of the stock on the last trading day in December 2019. None of the Executives have yet to elect to convert any portion of their unpaid Original Base Salary. As of June 30, 2020, there was approximately $721,415 of unpaid Original Base Salary and Incremental Salary related to the period prior to December 31, 2019 and $93,110 of unpaid Original Base Salary and Incremental Salary related to the period January 1, 2020 through June 30, 2020 . |
15. Mint Organics
15. Mint Organics | 9 Months Ended |
Jul. 31, 2019 | |
Mint Organics | |
Mint Organics | NOTE 15 – MINT ORGANICS INC. Mint Organics Inc. (“Mint Organics”) authorized capital consists of (i) 1,000 shares of Class A voting common stock, par value $0.001 per share (“Class A Common Stock”); (ii) 1,000 shares of Class B Non-voting common stock, par value $0.001 per share (“Class B Common Stock”); and (iii) 1,000 shares of Preferred Stock, par value $0.001 per share. Organicell owns 550 shares of Class A Common Stock, representing 100% of the outstanding shares of Class A Common Stock. There are no shares of Class B Common Stock currently outstanding. Pursuant to the Certificate Of Designation filed on February 28, 2017 and as amended on March 23, 2017, Mint Organics authorized 300 shares of Series A convertible preferred stock, par value $0.001 per share and a stated value of $1,000 per share (“Mint Series A Preferred Stock”). The Mint Series A Preferred Stock is non-voting and non-redeemable. The amount of each share of the Mint Series A Preferred Stock shall automatically convert into 1.5 shares of Class B Common Stock of Mint Organics upon the earlier of (a) the fifth anniversary of the date such share of Mint Series A Preferred Stock was issued; or (b) Mint Organics’ receipt of the necessary licenses and permits required to operate business operations in the medical cannabis industry. In addition, commencing on the first anniversary of the issuance date and for the 90-day period thereafter, each holder of the Mint Series A Preferred Stock shall have the right, but not the obligation, to convert some or all of such holder’s shares of Mint Series A Preferred Stock (or Class B Common Stock equivalent) into unregistered shares, par value $0.001 per share, of common stock of Organicell, based on the stated value divided by the average trading price of Organicell common stock for the ten trading days prior the conversion date. Notwithstanding the foregoing, the number of shares of Class B Common Stock issuable upon the conversion of the outstanding Mint Series A Preferred Stock shall be adjusted to ensure that the outstanding Class B Common Stock represents 45% of the outstanding capital stock of Mint Organics (based on conversion of 300 shares of the Mint Series A Preferred Stock or pro rata portion thereof). Mint Organics issued to each of Taddeo and Rohrbaugh (i) 150 shares of Mint Series A Preferred Stock and (ii) a warrant exercisable for up to 150,000 shares of Organicell’s common stock for $0.15 per share exercisable from the date of issuance until the third anniversary of the date of issuance (see Note 13). Mr. Peter Taddeo (“Taddeo) and Mr. Wayne Rohrbaugh (“Rohrbaugh”) each invested $150,000 to fund the initial operations of Mint Organics. The Company immediately established Mint Organics, , a 55%-owned subsidiary of the Company and Mint Organics Florida, Inc. (“Mint Organics Florida”), a wholly owned subsidiary of Mint Organics, each dedicated to obtain a license to dispense medical cannabis in Florida (collectively Mint Organics and Mint Organics Florida are referred to as the “Mint Organics Entities”). In connection with the investment, Mint Organics issued to each of Taddeo and Rohrbaugh (i) 150 shares of Mint Series A Preferred Stock and (ii) a warrant exercisable for up to 150,000 shares of Organicell’s common stock for $0.15 per share exercisable from the date of issuance until the third anniversary of the date of issuance (see Note 13). In addition, in connection with the agreement, Taddeo was appointed as the Chief Executive Officer and as a director of the Mint Organics Entities. Rohrbaugh was appointed as the Chief Operating Officer and as a director of the Mint Organics Entities. On March 8, 2017, Mint Organics issued warrants to purchase shares of Class A Common Stock, of Mint Organics, vesting on the date Mint Organics, through one of its subsidiaries, obtains a license from a state to dispense cannabis until the fifth anniversary thereof to the following executives of Mint Organics: Name: Warrants: Exercise Price: Albert Mitrani 79 $ 0.001 Ian T. Bothwell 79 $ 0.001 Dr. Maria I. Mitrani 79 $ 0.001 TOTAL 237 In connection with an independent valuation using a Black-Scholes option model, the fair value of the warrants issued were determined to be $34,949. At the time of issuance, the Company estimated that the warrants would be fully vested by December 31, 2017. The Company has recorded amortization expense totaling $0 and $6,889 during the nine months ended July 31, 2019 and 2018, respectively, as additional stock-based compensation. Mint CEO Employment Agreement Pursuant to an employment agreement entered into effective May 1, 2017, with Mr. Taddeo (“Taddeo”) and Mint Organics (“Taddeo Employment Agreement”), Mr. Taddeo shall serve as the Chief Executive Officer of Mint Organics (“Mint CEO”) and a member of the Board of Directors of Mint Organics (“Mint Board”). The employment term shall be for three years, unless terminated earlier pursuant to the terms of the agreement, and thereafter deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term at least 90 days prior to the applicable renewal date. The Mint CEO’s base annual salary is $180,000 during the period prior to Mint Organics, through one of its subsidiaries, or by other means, obtains or acquires access for a license from a state to dispense cannabis which shall accrue commencing as of the effective date and shall be payable upon Mint Organics generating sufficient net revenue or obtaining sufficient third party financing; and thereafter payable in periodic installments in accordance with Mint Organics customary payroll practices, but no less frequently than monthly. The Mint CEO’s base salary shall automatically be adjusted to an annual rate of base salary of $250,000 once the license is obtained. The base salary shall be reviewed at least annually by the Mint Board and the Mint Board may, but shall not be required to, increase the base salary during the employment term. In connection with the execution of the agreement, Mint Organics agreed to pay the Mint CEO a $25,000 signing bonus which shall be accrued and paid by Mint Organics upon Mint Organics having sufficient cash flow. The agreement also contains terms regarding eligibility for future annual bonuses, annual equity awards under Mint Organics’ equity plan, if any, fringe benefits and perquisites consistent with the practices Mint Organics (including health and dental insurance, an automobile expense allowance of $1,000 per month, and reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by the Mint CEO in accordance with Mint Organics’ expense reimbursement policies. Mint Organics may terminate the agreement at any time with or without “Cause” and the Mint CEO may resign at any time with or without “Good Reason” (as defined in the agreement). The nature of the obligations owing to the Mint CEO upon termination is more fully described in the agreement. In connection with the execution of the agreement, the Company granted the Mint CEO 1,000,000 shares of unregistered common stock of Organicell, which vested on December 31, 2017. On April 6, 2018, Peter Taddeo resigned as a member of the Board of Directors of the Company and as the Chief Executive Officer and member of the board of directors of the Mint Organics Entities. In connection with Mr. Taddeo’s resignation, Mr. Taddeo entered into a Separation and General Release Agreement (“Taddeo Separation Agreement”) whereby Mr. Taddeo agreed to release the Mint Organics Entities from all obligations in connection with the Taddeo Agreement and all other agreements and/or financial obligations between the parties related to the Taddeo’s employment or services performed with any of Mint Organics Entities totaling $156,568. In consideration for Taddeo entering into the Taddeo Separation Agreement, the Mint Organics Entities paid Taddeo $5,000 and Mr. Bothwell paid $3,000 to Taddeo for the purchase of the 1,000,000 shares of common stock of the Company that were granted to Taddeo in connection with the Taddeo Agreement. Contemporaneously with the execution of the Taddeo Separation Agreement, the Company and Mr. Taddeo entered into a Share Purchase and General Release Agreement whereby the Company agreed to purchase from Mr. Taddeo his 150 shares of Mint Series A Preferred Stock for an aggregate purchase price of $40,000. Exchange Agreement On May 1, 2019, the Company and Mint Organics entered into an exchange agreement whereby the Company agreed to acquire the 150 shares of Mint Series A Preferred Stock and the 150,000 warrants to purchase shares of common stock of the Company originally issued to Mr. Wayne Rohrbaugh in connection with participation agreement referred to above in exchange for 4,400,000 shares of common stock of the Company (approximately $0.034 per share representing a discount to the trading price of $0.049 as of the effective date of the transaction). In connection with the exchange, Mr. Rohrbaugh provided a release to the Company in connection with any claims associated with his original investment. Mint Organics Florida, Inc. Mint Organics Florida’s authorized capital structure consists of (1) 10,000 shares of Class A Voting Common Stock, par value $0.001 per share and (ii) 10,000 shares of Class B Non-Voting Common Stock, par value $0.001 per share. The Class A Common Stock shall have the sole right and power to vote on all matters on which a vote of shareholders is to be taken. In all matters, with respect to actions both by vote and by consent, each holder of shares of the Class A Common Stock shall be entitled to cast one vote in person or by proxy for each share of Class A Common Stock standing in such holder’s name on the transfer books of the Corporation. The Class B Common Stock shall not be entitled to vote on any matters. On February 28, 2017, the Board of Mint Organics Florida issued 2,125 shares of Class A Voting Common Stock, par value $0.001 per share, of Mint Organics Florida to Mint Organics and determined that the fair consideration for the initial issuance of the Series A Voting Common Stock is $0.001 per share. Offering: On March 17, 2017, Mint Organics Florida initiated an offering to raise up to $1,000,000 in exchange for up to 212.5 shares of Class B Common Stock, representing approximately 10.0% of the outstanding equity of Mint Organics Florida as of the date of the offering. The proceeds of the offering were to be used for general working capital purposes. On April 6, 2017, Mint Organics received proceeds of $100,000 in connection with the sale of 21.25 units to an investor in connection with the offering (representing a 1% minority interest in the equity of Mint Organics Florida). On May 1, 2019, the Company and Mint Organics Florida entered into an exchange agreement whereby the Company agreed to acquire the 21.25 units from the investor referred to above in exchange for 2,400,000 shares of common stock of the Company (approximately $0.042 per share representing a discount to the trading price of $0.049 as of the effective date of the transaction). In connection with the exchange, the investor provided a release to the Company in connection with any claims associated with the investor’s original investment. Non-controlling interests in Mint Organics and Mint Organics Florida The Company’s non-controlling interests in Mint Organics and Mint Organics Florida at October 31, 2018 and July 31, 2019 are determined based on the pro rata equity percentage held by the non-controlling equity holders of Mint Organics and Mint Organics Florida during each of the respective periods, provided however, that the carrying amount of non-controlling interests shall not be negative. Effective May 1, 2019, the Company has acquired all of the minority interests issued in Mint Organics and Mint Organics Florida, and accordingly, there no longer exists any non-controlling interests in those entities as of such date. At July 31, 2019 and October 31, 2018, the non-controlling interests of Mint Organics Inc. and Mint Organics Florida were 0.0% and 0.0% and 22.5% and 4.0%, respectively. As of July 31, 2019 and October 31, 2018, the non-controlling interests representing the minority interest’s share of both Mint Organics and Mint Organics Florida equity were $0 and $42,977, respectively. |
16. Liabilities Attributable to
16. Liabilities Attributable to Discontinued Operations | 9 Months Ended |
Jul. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Liabilities Attributable to Discontinued Operations | NOTE 16 – LIABILITIES ATTRIBUTABLE TO DISCONTINUED OPERATIONS During September 2015, the Company formed Ethan NY for the purpose of selling clothing and accessories through a retail store. During June 2016, the Ethan NY operations were closed. The following summarizes the carrying amounts of the assets and liabilities of Ethan NY at July 31, 2019 and October 31, 2018 (see Note 14): July 31, 2019 October 31, 2018 Assets $ – $ – Liabilities: Accounts Payable $ 94,835 $ 94,835 Accrued Expenses 31,016 31,016 $ 125,851 $ 125,851 |
17. Segment Information
17. Segment Information | 9 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 17 - SEGMENT INFORMATION For the nine months ended July 31, 2019 and 2018, the Company operated only one operating segment. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the rules and regulations of the Securities Exchange Commission, although we believe that the disclosures made are adequate to make the information not misleading. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended October 31, 2018 filed with the Securities and Exchange Commission. |
Concentrations of Credit Risk | Concentrations of Credit Risk The balance sheet items that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Balances in accounts are insured up to Federal Deposit Insurance Corporation (“FDIC”) limits of $250,000 per institution. At July 31, 2019, the Company did not have any cash balances in financial institutions in excess of FDIC insurance coverage. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made. For the three months ended July 31, 2019 and 2018, the Company recorded bad debt expense of $0. For the nine months ended July 31, 2019 and 2018, the Company recorded bad debt expense $0 and $36,090, respectively. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value using the average cost method. We provide reserves for potential excess, dated or obsolete inventories based on an analysis of forecasted demand compared to quantities on hand and any firm purchase orders, as well as product shelf life. At July 31, 2019, we determined that there were not any reserves required in connection with our finished goods. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives of property and equipment range from 3 to 15 years. Upon sale or retirement, the cost and related accumulated depreciation and amortization are eliminated from their respective accounts, and the resulting gain or loss is included in results of operations. Repairs and maintenance charges, which do not increase the useful lives of the assets, are charged to operations as incurred. |
Revenue Recognition | Revenue Recognition Effective November 1, 2018, the Company adopted FASB Accounting Standards Update (“ASU”) Topic 606 “Revenue from Contracts with Customers” which requires the Company to recognize revenue in amounts that reflect the prorata completion of the performance obligations of the Company required under the contracts. The Company applied the new standard using a modified retrospective approach. The Company recognizes revenue only when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. Our performance obligations are satisfied and control is transferred at a point-in-time, which is typically when the transfer and title to the product sold has taken place and there is evidence of our customer’s satisfactory acceptance of the product shipment or delivery. Due to the nature of the Company’s sales transactions, this adoption did not have any impact to the Company’s financial statements for the nine months ended July 31, 2019. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic income (loss) per common share is calculated by dividing the Company's net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company's net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted average number of shares adjusted for any potentially dilutive debt or equity. At July 31, 2019, the Company had 5,115,084 common shares issuable upon the exercise of warrants that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the three and nine months ended July 31, 2019. At July 31, 2018, the Company had 3,687,484 common shares issuable upon the exercise of warrants that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the three and nine months ended July 31, 2018. |
Stock-Based Compensation | Stock-Based Compensation All share-based payments to employees, including grants of employee stock options, are recognized in the financial statements based on their fair values. Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based upon the estimated fair value of the option or warrant. |
Income Taxes | Income Taxes The Company is required to file a consolidated tax return that includes all of its subsidiaries. Provisions for income taxes are based on taxes payable or refundable for the current year taxable income for federal and state income tax reporting purposes and deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss carryforwards. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of the operations in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with FASB Topic 740 – Income Taxes. This pronouncement prescribes a recognition threshold and measurement process for financial statement recognition of uncertain tax positions taken or expected to be taken in a tax return. The interpretation also provides guidance on recognition, derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. For the nine months ended July 31, 2019 the Company incurred operating losses, and therefore, there was not any income tax expense amount recorded during that period. During the nine months ended July 31, 2018 there was a change in ownership which caused a change in control under IRC Section 382 (“Section 382 event”). Prior to the Section 382 event, the Company utilized a portion of its available net operating loss carryforwards to offset income through that date mainly resulting from the sale of ANU. Any remaining net operating losses which had been carried forward from years ended October 31, 2017 and before the Section 382 event were lost. There is a full valuation allowance for nine months ended July 31, 2019 and 2018. Since January 1, 2018, the nominal corporate tax rate in the United States of America is 21 percent due to the passage of the "Tax Cuts and Jobs Act" on December 20, 2017 by the US Senate and House of Representatives. |
Valuation of Derivatives | Valuation of Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date. We analyzed the derivative financial instruments in accordance with ASC 815. The Company utilized Monte Carlo Simulation models that value the derivative liability based on a probability weighted discounted cash flow model. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. The derivative liabilities result in a reduction of the initial carrying amount (as unamortized discount) of the Convertible Notes. This derivative liability is marked-to-market each quarter with the change in fair value recorded in the income statement. Unamortized discount is amortized to interest expense using the effective interest method over the life of the Convertible Note. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company includes fair value information in the notes to financial statements when the fair value of its financial instruments is different from the book value. When the book value approximates fair value, no additional disclosure is made. The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities and convertible debt. The estimated fair value of cash, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. The Company follows the provisions of ASC 820 with respect to its financial instruments. As required by ASC 820, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. The Company’s convertible features associated with its promissory notes (see Note 9) which were required to be measured at fair value on a recurring basis under of ASC 815 as of January 31, 2018, the date immediately prior to the event that eliminated the convertible instrument related to the derivative liability, and October 31, 2017, were all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities as of January 31, 2018 and October 31, 2017: Level one Level two Level three The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company’s derivative liability is measured at fair value on a recurring basis. The Company classifies the fair value of the derivative liability under level three. Based on ASC Topic 815 and related guidance, the Company concluded the common stock issuable pursuant to the conversion features of the convertible promissory notes are required to be accounted for as derivatives as of the issue date due to a reset feature on the exercise price. At the date of issuance common stock derivative liabilities were measured at fair value using either quoted market prices of financial instruments with similar characteristics or other valuation techniques. The Company records the fair value of these derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statements of operations as “change in fair value of derivative liabilities.” These derivative instruments are not designated as hedging instruments under ASC 815-10 and are disclosed on the balance sheet under Derivative Liabilities. Further, and in accordance with ASC 815, the embedded derivatives are revalued using a Monte Carlo Simulation model at issuance and at each balance sheet date and marked to fair value with the corresponding adjustment as a “gain or loss on change in fair values” in the consolidated statement of operations. The Company classifies the fair value of these securities under level three of the fair value hierarchy of financial instruments. Changes in the unobservable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. During the nine months ended July 31, 2018, the Company recorded a gain of $265,597 associated with the change in fair value of the derivative liabilities from October 31, 2017. The Company did not have any convertible instruments outstanding at July 31, 2019 and October 31, 2018 that qualify as derivatives. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, a pronouncement was issued by the FASB that creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company does not expect that implementation of the new pronouncement will have a material impact to its financial statements. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events that occurred after July 31, 2019 through the financial statement issuance date for subsequent event disclosure consideration. |
6. Inventories (Tables)
6. Inventories (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories totaled $62,093 and $0 at July 31, 2019 and October 31, 2018, respectively. July 31, 2019 October 31, 2018 Raw materials and supplies $ 5,875 $ – Finished goods 56,218 – Total inventories $ 62,093 $ – |
7. Property and Equipment (Tabl
7. Property and Equipment (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | July 31, 2019 October 31, 2018 Computer equipment $ 8,653 $ 8,653 Manufacturing equipment 272,331 – 280,984 8,653 Less: accumulated depreciation and amortization (11,747 ) (2,875 ) Total property and equipment, net $ 269,237 $ 5,778 |
12. Capital Stock (Tables)
12. Capital Stock (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
Schedule of minimum pre-Transaction price per share | On June 29, 2020, the Board amended the MCPP, providing for the additional grant of common stock of the Company to the current senior executive members of management and the current non-executive members of the Board based on the Company completing any transaction occurring while employed and/or serving as a member of the Board, respectively, that results in a change in control of the Company or any sale of substantially all the assets of the Company (“Transaction”) which upon after giving effect to such issuance of shares below, corresponds to a minimum pre-Transaction fully diluted price per share of the Company’s common stock in the amounts indicated below. Pre-Transaction Price Per Share Valuation (a) Executive Bonus Shares Issued (b) Non-executive Board Bonus Shares Issued (c) $ 0.22 40,000,000 2,000,000 $ 0.34 60,000,000 3,000,000 $ 0.45 80,000,000 4,000,000 $ 0.54 100,000,000 5,000,000 (a) proforma for issuance of all shares to be issued pursuant to the MCPP and other in the money contingent share issuances (b) per each executive consisting of Albert Mitrani, Dr. Mari Mitrani, Ian Bothwell, and Dr. George Shapiro (c) per each non-executive Board member consisting of Dr. Allen Meglin and Michael Carbonara |
Schedule of debt and/or equity financings | On August 14, 2020, the Board amended the MCPP, providing for the additional grant of common stock of the Company to each Dr. Maria I. Mitrani and Ian Bothwell based on the Company obtaining aggregate gross fundings (grants for research and development and clinical trials, purchase contracts for Company products, debt and/or equity financings) or other financial awards during the term of employment with the Company based on the amounts indicated below: Aggregate Funding Amount Shares From To $ 2,500,000 $ 5,000,000 5,000,000 $ 5,000,001 $ 10,000,000 10,000,000 $ 10,000,001 $ 30,000,000 30,000,000 |
Schedule of management and consultants performance stock plan | Pursuant to the MCPP, as of September 23, 2020, a total of 233,000,000 shares have been issued and approximately 582,500,000 shares are authorized to be issued under the MCPP subject to the achievement of the defined contingent performance based milestones described above and provided the milestones are achieved while the individual is employed and/or serving as a member of the Board: MCPP MCPP MCPP Remaining Total Shares Shares Shares Name Awarded Available Approved Albert Mitrani 50,000,000 137,500,000 187,500,000 Ian Bothwell 50,000,000 167,500,000 217,500,000 Dr. Maria I. Mitrani 50,000,000 167,500,000 217,500,000 Dr. George Shapiro 50,000,000 100,000,000 150,000,000 Dr. Allen Meglin – 5,000,000 5,000,000 Michael Carbonara – 5,000,000 5,000,000 Consultants 33,000,000 – 33,000,000 Total 233,000,000 582,500,000 815,500,000 |
13. Warrants (Tables)
13. Warrants (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Warrants | |
Summary of Warrant Activity | A summary of warrant activity for the nine months ended July 31, 2019 and 2018 are presented below. Number of Weighted-average Remaining Aggregate Outstanding at October 31, 2018 3,687,484 $ 0.41 1.14 $ – Granted 2,000,000 $ 0.08 1.00 $ – Exercised – $ – – $ – Expired/Forfeited (572,400 ) $ 0.59 0.15 $ – Outstanding and exercisable at July 31, 2019 5,115,084 $ 0.26 0.50 $ – Number of Weighted-average Remaining Aggregate Outstanding at October 31, 2017 158,137,484 $ 0.05 9.02 $ – Granted – $ – – $ – Exercised 77,300,000 $ 0.04 8.45 $ – Expired/Forfeited 77,150,000 $ 0.04 8.42 $ – Outstanding and exercisable at July 31, 2018 3,687,484 $ 0.41 1.39 $ – |
14. Commitments and Contingen_2
14. Commitments and Contingencies (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of adjustment revenues | Monthly Revenues Base Salary $ 1.00 $ 130,000 $ 1.50 $ 200,000 $ 2.00 $ 275,000 $ 3.50 $ 630,000 $ 5.00 $ 900,000 |
15. Mint Organics (Tables)
15. Mint Organics (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Mint Organics | |
Schedule of Warrants Issued to Purchase Common Stock for Executives | On March 8, 2017, Mint Organics issued warrants to purchase shares of Class A Common Stock, of Mint Organics, vesting on the date Mint Organics, through one of its subsidiaries, obtains a license from a state to dispense cannabis until the fifth anniversary thereof to the following executives of Mint Organics: Name: Warrants: Exercise Price: Albert Mitrani 79 $ 0.001 Ian T. Bothwell 79 $ 0.001 Dr. Maria I. Mitrani 79 $ 0.001 TOTAL 237 |
16. Liabilities Attributable _2
16. Liabilities Attributable to Discontinued Operations (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups Including Discontinued Operations Income Statement Balance Sheet and Additional Disclosures | The following summarizes the carrying amounts of the assets and liabilities of Ethan NY at July 31, 2019 and October 31, 2018 (see Note 14): July 31, 2019 October 31, 2018 Assets $ – $ – Liabilities: Accounts Payable $ 94,835 $ 94,835 Accrued Expenses 31,016 31,016 $ 125,851 $ 125,851 |
1. Organization and Descripti_2
1. Organization and Description of Business (Details Narrative) - Management and Business Associates, LLC [Member] | Apr. 23, 2018USD ($)$ / sharesshares |
Number of common stock shares purchased during the period | shares | 222,425,073 |
Stock purchased during the period, value | $ | $ 222,425 |
Purchase price per share | $ / shares | $ 0.001 |
Percentage of owned subsidiary | 51.00% |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
FDIC limits per institutions | $ 250,000 | $ 250,000 | ||
Bad debt expense | 0 | $ 0 | $ 0 | $ 36,090 |
Corporate tax rate | 21.00% | |||
Change in fair value of derivative liabilities | $ 0 | $ 0 | $ 0 | $ 265,597 |
Minimum [Member] | ||||
Property and equipment estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Property and equipment estimated useful lives | 15 years | |||
Common Shares Issuable Upon Exercise of Warrants [Member] | ||||
Antidilutive securities excluded from computation of earnings per share | 5,115,084 | 3,687,484 |
3. Going Concern (Details Narra
3. Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Loss from operations | $ (339,144) | $ (301,450) | $ (1,065,750) | $ (3,071,674) | |
Accumulated deficit | 15,563,143 | 15,563,143 | $ 14,547,901 | ||
Working capital deficit | $ (1,452,761) | $ (1,452,761) |
4. Sale and Transfer of Anu M_2
4. Sale and Transfer of Anu Manufacturing Assets (Details Narrative) - USD ($) | Feb. 05, 2018 | Jul. 31, 2019 | Oct. 31, 2018 |
Warrants forfeited | 77,150,000 | ||
Issuance of common stock | 7,500,000 | ||
Fair value stock issued | $ 83,250 | ||
Escrow deposit | $ 47,500 | ||
Securities Purchase Agreement [Member] | |||
Proceeds from sale of Notes outstanding | $ 762,477 | ||
Face value of Notes outstanding | 527,778 | ||
Accrued and unpaid interest | 8,589 | ||
Prepayment penalties | 211,111 | ||
Reimbursement of legal fees | 15,000 | ||
Vera Acquisition LLC [Member] | Organicell Distribution Agreement [Member] | |||
Cash payment for purchase of assets | 950,000 | ||
Prepaid of product supply | $ 100,000 |
5. Reorganization (Details Narr
5. Reorganization (Details Narrative) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Stock compensation expense | $ 328,579 | $ 3,989,496 |
Ian T. Bothwell [Member] | ||
Warrants Exercised | 48,624,561 | |
Exercise Price | $ 0.001 | |
Common stock granted | 4,675,439 | |
Dr. Maria Ines Mitrani [Member] | ||
Warrants Exercised | 21,757,895 | |
Exercise Price | $ 0.001 | |
Common stock granted | 2,092,105 | |
Reorganization Plan [Member] | Management and Business Associates, LLC [Member] | ||
Stock issued during period, shares, new issues | 222,425,073 | |
Stock compensation expense | $ 2,758,071 |
6. Inventories (Details)
6. Inventories (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 5,875 | $ 0 |
Finished goods | 56,218 | 0 |
Total Inventories | $ 62,093 | $ 0 |
6. Inventories (Details Narrati
6. Inventories (Details Narrative) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventories | $ 62,093 | $ 0 |
7. Property and Equipment (Deta
7. Property and Equipment (Details) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Property and equipment, gross | $ 280,984 | $ 8,653 |
Less: accumulated depreciation and amortization | (11,747) | (2,875) |
Total property and equipment, net | 269,237 | 5,778 |
Computer Equipment [Member] | ||
Property and equipment, gross | 8,653 | 8,653 |
Manufacturing Equipment [Member] | ||
Property and equipment, gross | $ 272,331 | $ 0 |
7. Property and Equipment (De_2
7. Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Mar. 31, 2019 | |
Depreciation expense | $ 5,906 | $ 492 | $ 8,872 | $ 7,342 | |
Lease Agreement [Member] | |||||
Lab equipment | $ 239,595 | ||||
Annual interest rate | 4.50% | ||||
Estimated useful lives of leased equipment | 15 years |
8. Related Party Transactions (
8. Related Party Transactions (Details Narrative) - USD ($) | Mar. 01, 2020 | May 02, 2019 | Aug. 31, 2020 | Jul. 31, 2020 | Apr. 27, 2020 | Feb. 26, 2020 | Aug. 31, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2020 | May 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Mar. 08, 2017 | Nov. 02, 2016 |
Warrants forfeited | 77,150,000 | ||||||||||||||||
Monthly rent expense | $ 2,900 | ||||||||||||||||
Security deposit | $ 5,000 | $ 5,000 | |||||||||||||||
Warrant exercise price per share | $ 0.15 | $ 0.02 | $ 0.02 | ||||||||||||||
Cost of sale related parties | $ 51,510 | $ 19,550 | |||||||||||||||
Number of common stock sold | 100,000 | ||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 400 | 100 | |||||||||||||||
Preferred stock par value | $ 0.001 | ||||||||||||||||
Preferred stock voting percentage | The outstanding shares of Series A Non-Convertible Preferred Stock shall vote together with the shares of common stock and other voting securities of the Company as a single class and, regardless of the number of shares of Series A Non-Convertible Preferred Stock outstanding, and as long as at least one share of Series A Non-Convertible Preferred Stock is outstanding, such shares shall represent 80% of all votes entitled to be voted at any annual or special meeting of stockholders of the Company or action by written consent of stockholders. Each outstanding share of the Series A Non-Convertible Preferred Stock shall represent its proportionate share of the 80% which is allocated to the outstanding shares of Series A Non-Convertible Preferred Stock. | ||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 400 | 0 | |||||||||||||||
Preferred stock par value | $ 0.001 | $ 0.001 | |||||||||||||||
Series A Preferred Stock [Member] | Mint Organics [Member] | |||||||||||||||||
Preferred stock par value | $ 0.001 | ||||||||||||||||
Number of shares aquired | 150 | ||||||||||||||||
Warrants purchased | 150,000 | ||||||||||||||||
Chief Executive Officer [Member] | Series A Non-Convertible Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 100 | 100 | |||||||||||||||
Preferred stock par value | $ 0.001 | $ 0.001 | |||||||||||||||
Director [Member] | |||||||||||||||||
Number of common stock sold | 422,514 | 1,166,666 | 5,000,000 | 11,000,000 | |||||||||||||
Purchase price | $ 100,000 | $ 77,251 | $ 220,000 | ||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||
Warrants forfeited | 53,300,000 | ||||||||||||||||
Common stock received from exercise of warrants | 4,675,439 | ||||||||||||||||
Common stock granted | 4,675,439 | ||||||||||||||||
Value of shares granted | $ 57,975 | ||||||||||||||||
Warrant exercise price per share | $ 0.028 | $ 0.001 | |||||||||||||||
Due to related party | 57,881 | ||||||||||||||||
Accrued salary | $ 246,907 | ||||||||||||||||
Number of cashless warrants granted | 7,500,000 | ||||||||||||||||
Chief Financial Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 100 | ||||||||||||||||
Preferred stock, shares Forfeited | 100 | ||||||||||||||||
Chief Science Officer [Member] | |||||||||||||||||
Warrants forfeited | 23,850,000 | ||||||||||||||||
Common stock received from exercise of warrants | 2,092,105 | ||||||||||||||||
Common stock granted | 2,092,105 | ||||||||||||||||
Value of shares granted | $ 25,942 | ||||||||||||||||
Warrant exercise price per share | $ 0.001 | ||||||||||||||||
Accrued salary | $ 89,613 | ||||||||||||||||
Chief Science Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 100 | ||||||||||||||||
Preferred stock, shares Forfeited | 100 | ||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||
Warrant exercise price per share | $ 0.001 | ||||||||||||||||
Chief Executive Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 100 | ||||||||||||||||
Preferred stock par value | $ 0.001 | ||||||||||||||||
Preferred stock, shares Forfeited | 100 | ||||||||||||||||
Chief Operating Officer [Member] | |||||||||||||||||
Accrued salary | $ 108,386 | ||||||||||||||||
Number of common stock sold | 250,000 | ||||||||||||||||
Issuance of common stock | 7,500,000 | ||||||||||||||||
Chief Operating Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares issued | 100 | ||||||||||||||||
Preferred stock, shares Forfeited | 100 | ||||||||||||||||
Mr. Wayne Rohrbaugh [Member] | |||||||||||||||||
Preferred stock, shares issued | 150 | ||||||||||||||||
Warrant exercise price per share | $ 0.15 | ||||||||||||||||
Number of shares exchanged | 4,400,000 | ||||||||||||||||
Lglesias [Member] | |||||||||||||||||
Due to related party | $ 199,397 | ||||||||||||||||
Director [Member] | |||||||||||||||||
Share Price | $ 0.10 | $ 0.03 | $ 0.02 | $ 0.028 | $ 0.10 | $ 0.02 | |||||||||||
Issuance of common stock | 5,000,000 | ||||||||||||||||
Chief Medical Officer [Member] | |||||||||||||||||
Issuance of common stock | 3,000,000 | 2,000,000 | 2,500,000 | ||||||||||||||
Option granted | 5,000,000 | ||||||||||||||||
Compensation | $ 82,250 | ||||||||||||||||
Robert Zucker | |||||||||||||||||
Share Price | $ 0.022 | ||||||||||||||||
Issuance of common stock | 736,808 | ||||||||||||||||
Grant date value | $ 16,210 |
9. Notes Payable (Details Narra
9. Notes Payable (Details Narrative) | Oct. 15, 2019USD ($)shares | May 02, 2019USD ($)$ / sharesshares | Aug. 10, 2018USD ($)Integer$ / shares | Oct. 31, 2020USD ($)$ / sharesshares | Jun. 25, 2020USD ($) | Sep. 19, 2019USD ($) | Jun. 30, 2019USD ($)shares | May 31, 2019USD ($)shares | Mar. 31, 2019USD ($)Integer | Oct. 31, 2018USD ($)Integer | Jun. 20, 2018USD ($)Integer | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Feb. 05, 2019USD ($) | Jun. 22, 2017USD ($) |
Debt principal amount | $ 220,000 | $ 220,000 | |||||||||||||||
Stock issued during period, value, new issues | 83,250 | ||||||||||||||||
Unsecured loan principal balance | $ 25,000 | ||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 30,478 | $ 100,622 | |||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 1,111,111 | 3,773,584 | |||||||||||||||
Unsecured line of credit | $ 100,000 | ||||||||||||||||
Credit Facility | $ 125,000 | ||||||||||||||||
Accredited Investors [Member] | |||||||||||||||||
Debt trading days | Integer | 30 | 30 | 30 | 30 | |||||||||||||
Debt conversion price per share | $ / shares | $ 0.45 | ||||||||||||||||
Unamortized discount | $ 100,000 | $ 30,000 | $ 150,000 | $ 70,000 | $ 70,000 | ||||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||
Debenture issued | $ 100,000 | $ 30,000 | $ 70,000 | $ 150,000 | |||||||||||||
Payment for general working capital purposes | 350,000 | ||||||||||||||||
Unsecured Loan Agreement [Member] | Mint Organics Inc [Member] | |||||||||||||||||
Interest expense | $ 1,324 | $ 1,512 | $ 4,349 | $ 4,537 | |||||||||||||
Unsecured loan principal balance | $ 60,000 | ||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||
Lease Agreement [Member] | |||||||||||||||||
Lab equipment | $ 239,595 | ||||||||||||||||
Annual interest rate | 4.50% | ||||||||||||||||
Estimated useful lives of leased equipment | 15 years | ||||||||||||||||
Debenture holder [Member] | |||||||||||||||||
Debt conversion price per share | $ / shares | $ 0.125 | ||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 20,100 | ||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 160,000 | ||||||||||||||||
Debenture holder [Member] | Settlement And General Release Agreement [Member] | |||||||||||||||||
Debt principal amount | $ 50,000 | ||||||||||||||||
Periodic payments | $ 6,250 | ||||||||||||||||
Third Party [Member] | Mint Organics Inc [Member] | |||||||||||||||||
Stock issued during period, shares, new issues | shares | 2,735,000 | ||||||||||||||||
Stock issued during period, value, new issues | $ 72,568 | ||||||||||||||||
Share Price | $ / shares | $ 0.0265 | ||||||||||||||||
Noteholder | FundingFacility | |||||||||||||||||
Debt principal amount | $ 500,000 | ||||||||||||||||
Debt interest percentage | 6.00% | ||||||||||||||||
Debt due date | Feb. 15, 2021 | ||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 500,000 | ||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 40,000,000 |
10. Derivative Liabilities (Det
10. Derivative Liabilities (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Change in fair value of derivative liabilities | $ 0 | $ 0 | $ 0 | $ 265,597 |
11. Irs Penalties (Details Narr
11. Irs Penalties (Details Narrative) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Penalties | $ 90,000 | |
Accrued tax penalties | $ 70,000 | $ 70,000 |
12. Capital Stock (Details - Mi
12. Capital Stock (Details - Minimum pre-Transaction price per share) | 9 Months Ended | |
Jul. 31, 2019$ / sharesshares | ||
$0.22 | ||
Pre-transaction price per share valuation | $ / shares | $ 0.22 | [1] |
Executive bonus shares issued | 40,000,000 | [2] |
Non-executive board bonus shares issued | 2,000,000 | [3] |
$0.34 | ||
Pre-transaction price per share valuation | $ / shares | $ 0.34 | [1] |
Executive bonus shares issued | 60,000,000 | [2] |
Non-executive board bonus shares issued | 3,000,000 | [3] |
$0.45 | ||
Pre-transaction price per share valuation | $ / shares | $ 0.45 | [1] |
Executive bonus shares issued | 80,000,000 | [2] |
Non-executive board bonus shares issued | 4,000,000 | [3] |
$0.54 | ||
Pre-transaction price per share valuation | $ / shares | $ 0.54 | [1] |
Executive bonus shares issued | 100,000,000 | [2] |
Non-executive board bonus shares issued | 5,000,000 | [3] |
[1] | proforma for issuance of all shares to be issued pursuant to the MCPP and other in the money contingent share issuances | |
[2] | per each executive consisting of Albert Mitrani, Dr. Mari Mitrani, Ian Bothwell, and Dr. George Shapiro | |
[3] | per each non-executive Board member consisting of Dr. Allen Meglin and Michael Carbonara |
12. Capital Stock (Details - De
12. Capital Stock (Details - Debt and/or equity financings) | 9 Months Ended |
Jul. 31, 2019USD ($)shares | |
Range 1 [Member] | |
Aggregate funding amount, minimum | $ 2,500,000 |
Aggregate funding amount, maximum | $ 5,000,000 |
Shares | shares | 5,000,000 |
Range 2 [Member] | |
Aggregate funding amount, minimum | $ 5,000,001 |
Aggregate funding amount, maximum | $ 10,000,000 |
Shares | shares | 10,000,000 |
Range 3 [Member] | |
Aggregate funding amount, minimum | $ 10,000,001 |
Aggregate funding amount, maximum | $ 30,000,000 |
Shares | shares | 30,000,000 |
12. Capital Stock (Details - Ma
12. Capital Stock (Details - Management and consultants performance stock plan) | 9 Months Ended |
Jul. 31, 2019shares | |
Mcpp shares awarded | 233,000,000 |
Mcpp remaining shares available | 582,500,000 |
Mcpp total shares approved | 815,500,000 |
Albert Mitrani | |
Mcpp shares awarded | 50,000,000 |
Mcpp remaining shares available | 137,500,000 |
Mcpp total shares approved | 187,500,000 |
Ian Bothwell [Member] | |
Mcpp shares awarded | 50,000,000 |
Mcpp remaining shares available | 167,500,000 |
Mcpp total shares approved | 217,500,000 |
Maria I. Mitrani [Member] | |
Mcpp shares awarded | 50,000,000 |
Mcpp remaining shares available | 167,500,000 |
Mcpp total shares approved | 217,500,000 |
George Shapiro [Member] | |
Mcpp shares awarded | 50,000,000 |
Mcpp remaining shares available | 100,000,000 |
Mcpp total shares approved | 150,000,000 |
Allen Meglin [Member] | |
Mcpp shares awarded | 0 |
Mcpp remaining shares available | 5,000,000 |
Mcpp total shares approved | 5,000,000 |
Michael Carbonara [Member] | |
Mcpp shares awarded | 0 |
Mcpp remaining shares available | 5,000,000 |
Mcpp total shares approved | 5,000,000 |
Consultants [Member] | |
Mcpp shares awarded | 33,000,000 |
Mcpp remaining shares available | 0 |
Mcpp total shares approved | 33,000,000 |
12. Capital Stock (Details Narr
12. Capital Stock (Details Narrative) - USD ($) | Nov. 01, 2020 | May 15, 2020 | Oct. 15, 2019 | May 02, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Dec. 05, 2018 | Jun. 05, 2018 | Apr. 06, 2017 | Sep. 17, 2015 | Oct. 31, 2020 | Sep. 30, 2020 | Sep. 23, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | May 31, 2020 | May 28, 2020 | Apr. 30, 2020 | Apr. 27, 2020 | Apr. 25, 2020 | Feb. 29, 2020 | Feb. 26, 2020 | Oct. 31, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Oct. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2020 | May 31, 2020 | Sep. 30, 2019 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Mar. 08, 2017 | Nov. 02, 2016 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||||||||||||||||||||||||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||
Forward stock split | eighteen-for-one forward stock split | ||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 60,000 | $ 30,000 | $ 400,000 | ||||||||||||||||||||||||||||||||||||||||||
Warrants to purchase share of common stock | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise price of warrants | $ 0.02 | $ 0.15 | $ 0.02 | $ 0.02 | $ 0.02 | ||||||||||||||||||||||||||||||||||||||||
Fair value of warrants issued | $ 6,600 | ||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 50,000 | $ 354,500 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 328,579 | $ 3,989,496 | |||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 30,478 | $ 100,622 | |||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,111,111 | 3,773,584 | |||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 83,250 | ||||||||||||||||||||||||||||||||||||||||||||
Mint Organics Florida, Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 21.25 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 100,000 | ||||||||||||||||||||||||||||||||||||||||||||
Number of shares aquired | 21.25 | ||||||||||||||||||||||||||||||||||||||||||||
Number of shares exchanged | 2,400,000 | ||||||||||||||||||||||||||||||||||||||||||||
Sales Rep Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 35,000 | ||||||||||||||||||||||||||||||||||||||||||||
VPAgreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 2,250,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 52,500 | $ 35,000 | |||||||||||||||||||||||||||||||||||||||||||
Consultants Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 264,000 | ||||||||||||||||||||||||||||||||||||||||||||
Three Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 7,500,000 | 3,250,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 65,000 | ||||||||||||||||||||||||||||||||||||||||||||
Warrants to purchase share of common stock | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise price of warrants | $ 0.08 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value of warrants issued | $ 6,600 | ||||||||||||||||||||||||||||||||||||||||||||
Seven Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 5,102,000 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 154,500 | ||||||||||||||||||||||||||||||||||||||||||||
Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 50,000 | ||||||||||||||||||||||||||||||||||||||||||||
Four Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 5,250,000 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 105,000 | ||||||||||||||||||||||||||||||||||||||||||||
Five Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 4,800,000 | 11,050,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 410,000 | $ 221,000 | |||||||||||||||||||||||||||||||||||||||||||
Two Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 1,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 25,000 | $ 60,000 | |||||||||||||||||||||||||||||||||||||||||||
19 accredited investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 13,499,992 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 405,000 | ||||||||||||||||||||||||||||||||||||||||||||
Nine Accredited Investors [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 8,606,665 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 392,100 | ||||||||||||||||||||||||||||||||||||||||||||
Consultant [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 325,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 40,790 | 250,000 | |||||||||||||||||||||||||||||||||||||||||||
Consultant [Member] | Consulting Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 1,100,000 | $ 1,700,000 | $ 1,700,000 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 12,020 | $ 18,580 | $ 45,900 | ||||||||||||||||||||||||||||||||||||||||||
Chief Medical Officer [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 5,000,000 | 2,000,000 | $ 3,000,000 | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 140,000 | $ 50,000 | $ 84,000 | $ 34,500 | |||||||||||||||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 3,000,000 | 2,000,000 | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||
Eight Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 950,000 | $ 950,000 | $ 950,000 | 925,000 | 4,200,000 | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 15,500 | $ 56,600 | 17,475 | $ 16,100 | $ 28,680 | ||||||||||||||||||||||||||||||||||||||||
Seven Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 1,750,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 55,500 | ||||||||||||||||||||||||||||||||||||||||||||
Nine Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 225,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 11,888 | ||||||||||||||||||||||||||||||||||||||||||||
Twelve Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 3,475,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 46,186 | ||||||||||||||||||||||||||||||||||||||||||||
Six Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 2,675,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 70,725 | ||||||||||||||||||||||||||||||||||||||||||||
Two Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 200,000 | 650,000 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 7,300 | $ 18,650 | |||||||||||||||||||||||||||||||||||||||||||
Four Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | 2,725,000 | 5,350,000 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 89,650 | $ 162,700 | |||||||||||||||||||||||||||||||||||||||||||
Independent Member [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 140,000 | ||||||||||||||||||||||||||||||||||||||||||||
Eight Individuals [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 6,900 | ||||||||||||||||||||||||||||||||||||||||||||
Director [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 736,808 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 16,210 | ||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Distributor [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 345,000 | ||||||||||||||||||||||||||||||||||||||||||||
Advisor [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 250,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 10,000 | ||||||||||||||||||||||||||||||||||||||||||||
Senior executive members [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 205,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Mr. Wayne Rohrbaugh [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Exercise price of warrants | $ 0.15 | ||||||||||||||||||||||||||||||||||||||||||||
Number of shares exchanged | 4,400,000 | ||||||||||||||||||||||||||||||||||||||||||||
Third Party [Member] | Mint Organics Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 2,735,000 | ||||||||||||||||||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 72,568 | ||||||||||||||||||||||||||||||||||||||||||||
Noteholder | FundingFacility | |||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 40,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Debenture holder [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 20,100 | ||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 160,000 | ||||||||||||||||||||||||||||||||||||||||||||
Milestones [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 2,376,000 | $ 3,915,000 | |||||||||||||||||||||||||||||||||||||||||||
Director [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 422,514 | 1,166,666 | 5,000,000 | 11,000,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 100,000 | $ 77,251 | $ 220,000 | ||||||||||||||||||||||||||||||||||||||||||
Related Party [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares sold during the period | 250,000 | 250,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 10,000 | ||||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Common stock granted | 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Chief Science Officer [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Common stock granted | 7,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Warrants to purchase share of common stock | 7,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise price of warrants | $ 0.028 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value of warrants issued | $ 214,500 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock granted | 15,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 0 | 400 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||
Percentage of voting equivalency of outstanding capital stock | 80.00% | 80.00% | 80.00% | ||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock [Member] | Mint Organics [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 300 | 300 | 300 | ||||||||||||||||||||||||||||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||||||||||||||||||||
Number of shares aquired | 150 | ||||||||||||||||||||||||||||||||||||||||||||
Warrants purchased | 150,000 | ||||||||||||||||||||||||||||||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||||||||||||||||||||||
Preferred stock voting rights | The outstanding shares of Series A Non-Convertible Preferred Stock shall vote together with the shares of common stock and other voting securities of the Company as a single class and, regardless of the number of shares of Series A Non-Convertible Preferred Stock outstanding, and as long as at least one share of Series A Non-Convertible Preferred Stock is outstanding, such shares shall represent 80% of all votes entitled to be voted at any annual or special meeting of stockholders of the Company or action by written consent of stockholders. Each outstanding share of the Series A Non-Convertible Preferred Stock shall represent its proportionate share of the 80% which is allocated to the outstanding shares of Series A Non-Convertible Preferred Stock. | ||||||||||||||||||||||||||||||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | Chief Executive Officer [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock, shares designated | 1,000,000 | 1,000,000 | 1,000,000 |
13. Warrants (Details - Warrant
13. Warrants (Details - Warrant Activity) - Warrant [Member] - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Number of Shares Outstanding beginning balance | 3,687,484 | 158,137,484 |
Number of Shares, Granted | 2,000,000 | 0 |
Number of Shares, Exercised | 0 | 77,300,000 |
Number of Shares, Expired/Forfeited | (572,400) | 77,150,000 |
Number of Shares Outstanding ending balance | 5,115,084 | 3,687,484 |
Number of shares Exercisable | 5,115,084 | 3,687,484 |
Weighted-average Exercise Price Outstanding beginning balance | $ 0.41 | $ 0.05 |
Weighted-average Exercise Price, Granted | 0.08 | |
Weighted-average Exercise Price, Exercised | 0.04 | |
Weighted-average Exercise Price, Expired/Forfeited | 0.59 | 0.04 |
Weighted-average Exercise Price Outstanding ending balance | 0.26 | 0.41 |
Weighted-average Exercise Price, Exercisable | $ 0.26 | $ 0.41 |
Remaining Contractual Term (years) Outstanding beginning balance | 1 year 1 month 20 days | 9 years 7 days |
Remaining Contractual Term (years), Granted | 1 year | |
Remaining Contractual Term (years), Exercised | 8 years 5 months 12 days | |
Remaining Contractual Term (years),Expired/Forfeited | 1 month 24 days | 8 years 5 months 1 day |
Remaining Contractual Term (years) Outstanding ending balance | 6 months | 1 year 4 months 20 days |
Remaining Contractual Term (years), Exercisable | 6 months | 1 year 4 months 20 days |
Aggregate Intrinsic Value Outstanding beginning balance | $ 0 | $ 0 |
Aggregate Intrinsic Value, Granted | 0 | 0 |
Aggregate Intrinsic Value, Exercised | 0 | 0 |
Aggregate Intrinsic Value, Expired/Forfeited | 0 | 0 |
Aggregate Intrinsic Value Outstanding ending balance | 0 | 0 |
Aggregate Intrinsic Value, Exercisabe | $ 0 | $ 0 |
13. Warrants (Details Narrative
13. Warrants (Details Narrative) - USD ($) | May 15, 2020 | Mar. 07, 2019 | Apr. 06, 2018 | Feb. 26, 2020 | Mar. 31, 2017 | Nov. 30, 2016 | Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Mar. 08, 2017 | Feb. 28, 2017 |
Number of warrant shares issued | 2,000,000 | ||||||||||
Risk free interest rate | 2.44% | ||||||||||
Expected term | 1 year | ||||||||||
Expected volatility | 108.00% | ||||||||||
Expected dividend rate | 0.00% | ||||||||||
Fair value of warrants | $ 6,600 | ||||||||||
Exercise price of warrants | $ 0.02 | $ 0.02 | $ 0.15 | ||||||||
Warrants forfeited | 77,150,000 | ||||||||||
Stock-based compensation expense | $ 328,579 | $ 3,989,496 | |||||||||
Warrant [Member] | |||||||||||
Stock-based compensation expense | $ 214,500 | ||||||||||
Chief Technology Officer [Member] | |||||||||||
Issuance of common stock | 7,500,000 | ||||||||||
Chief Operating Officer [Member] | |||||||||||
Issuance of common stock | 7,500,000 | ||||||||||
Chief Financial Officer [Member] | |||||||||||
Exercise price of warrants | $ 0.028 | 0.001 | |||||||||
Warrants forfeited | 53,300,000 | ||||||||||
Common stock received from exercise of warrants | 4,675,439 | ||||||||||
Chief Science Officer [Member] | |||||||||||
Exercise price of warrants | 0.001 | ||||||||||
Warrants forfeited | 23,850,000 | ||||||||||
Common stock received from exercise of warrants | 2,092,105 | ||||||||||
Chief Financial Officer [Member] | |||||||||||
Number of warrant shares issued | 7,500,000 | ||||||||||
Risk free interest rate | 0.14% | ||||||||||
Expected term | 4 years | ||||||||||
Expected volatility | 87.00% | ||||||||||
Expected dividend rate | 0.00% | ||||||||||
Fair value of warrants | $ 214,500 | ||||||||||
Exercise price of warrants | $ 0.028 | ||||||||||
Advisor [Member] | |||||||||||
Number of warrant shares issued | 6,000,000 | ||||||||||
Risk free interest rate | 0.31% | ||||||||||
Expected term | 3 years | ||||||||||
Expected volatility | 90.00% | ||||||||||
Expected dividend rate | 0.00% | ||||||||||
Fair value of warrants | $ 121,200 | ||||||||||
Stock-based compensation expense | $ 40,400 | ||||||||||
Employment Agreement [Member] | |||||||||||
Exercise price of warrants | $ 0.02 | ||||||||||
Employment Agreement [Member] | Chief Financial Officer [Member] | |||||||||||
Number of warrant shares issued | 31,800,000 | ||||||||||
Fair value of warrants | $ 215,000 | $ 318,000 | |||||||||
Reorganization cost | $ 533,000 | ||||||||||
Employment Agreement [Member] | Chief Financial Officer [Member] | Minimum [Member] | |||||||||||
Expected term | 8 years 7 months 6 days | ||||||||||
Employment Agreement [Member] | Chief Financial Officer [Member] | Maximum [Member] | |||||||||||
Expected term | 8 years 10 months 25 days | ||||||||||
Commercially available product percentage | 2.58% | ||||||||||
Employment Agreement [Member] | Chief Science Officer [Member] | |||||||||||
Number of warrant shares issued | 10,000,000 | ||||||||||
Risk free interest rate | 2.58% | ||||||||||
Expected volatility | 68.00% | ||||||||||
Expected dividend rate | 0.00% | ||||||||||
Fair value of warrants | $ 138,500 | $ 100,000 | |||||||||
Employment Agreement [Member] | Chief Science Officer [Member] | Minimum [Member] | |||||||||||
Expected term | 8 years 7 months 6 days | ||||||||||
Employment Agreement [Member] | Chief Science Officer [Member] | Maximum [Member] | |||||||||||
Expected term | 8 years 10 months 25 days | ||||||||||
Executive Employment Agreement [Member] | Chief Financial Officer [Member] | |||||||||||
Risk free interest rate | 2.58% | ||||||||||
Expected volatility | 68.00% | ||||||||||
Expected dividend rate | 0.00% |
14. Commitments and Contingen_3
14. Commitments and Contingencies (Details - Adjustment of revenues) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Monthly Revenues | $ 578,705 | $ 206,204 | $ 1,116,627 | $ 716,394 |
Revenue 1 [Member] | ||||
Monthly Revenues | 1,000,000 | |||
Base Salary Increase | 130,000 | |||
Revenue 2 [Member] | ||||
Monthly Revenues | 1,500,000 | |||
Base Salary Increase | 200,000 | |||
Revenue 3 [Member] | ||||
Monthly Revenues | 2,000,000 | |||
Base Salary Increase | 275,000 | |||
Revenue 4 [Member] | ||||
Monthly Revenues | 3,500,000 | |||
Base Salary Increase | 630,000 | |||
Revenue 5 [Member] | ||||
Monthly Revenues | 5,000,000 | |||
Base Salary Increase | $ 900,000 |
14. Commitments and Contingen_4
14. Commitments and Contingencies (Details Narrative) | May 15, 2020$ / sharesshares | Jan. 06, 2020USD ($)$ / sharesshares | Dec. 01, 2019USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | Feb. 25, 2018USD ($) | Jun. 30, 2020USD ($) | Jul. 31, 2019USD ($)ft²$ / shares | Jul. 31, 2018USD ($) | Feb. 26, 2020$ / shares | Mar. 31, 2019USD ($) | Mar. 07, 2019shares | Feb. 28, 2019USD ($) | Oct. 31, 2018USD ($) | Mar. 08, 2017$ / shares | Feb. 28, 2017$ / shares | Nov. 04, 2016$ / shares |
Warrant to purchase shares of common stock | shares | 2,000,000 | |||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.02 | $ 0.02 | $ 0.15 | |||||||||||||||
Security deposit | $ 5,000 | $ 5,000 | ||||||||||||||||
Stock-based compensation expense | 328,579 | $ 3,989,496 | ||||||||||||||||
Unpaid Original Base Salary and Incremental Salary | $ 721,415 | $ 93,110 | ||||||||||||||||
Ian T. Bothwell [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.06 | |||||||||||||||||
Dr. Maria Ines Mitrani [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | 0.06 | |||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | 0.001 | |||||||||||||||||
Chief Financial Officer [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.028 | 0.001 | ||||||||||||||||
Chief Science Officer [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.001 | |||||||||||||||||
Executive Employment Agreement [Member] | Ian T. Bothwell [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | 0.06 | |||||||||||||||||
Executive Employment Agreement [Member] | Dr. Maria Ines Mitrani [Member] | ||||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.06 | |||||||||||||||||
Executive Employment Agreement [Member] | Chief Executive Officer [Member] | A. Mitrani [Member] | ||||||||||||||||||
Base salary | $ 300,000 | |||||||||||||||||
Executive Employment Agreement [Member] | Chief Financial Officer [Member] | Ian T. Bothwell [Member] | ||||||||||||||||||
Base salary | 300,000 | |||||||||||||||||
Executive Employment Agreement [Member] | Chief Science Officer [Member] | Dr. Maria Ines Mitrani [Member] | ||||||||||||||||||
Base salary | $ 300,000 | |||||||||||||||||
Advisor Agreement [Member] | ||||||||||||||||||
Warrant to purchase shares of common stock | shares | 6,000,000 | |||||||||||||||||
Exercise price of warrants | $ / shares | $ 0.04 | |||||||||||||||||
Number of common stock issued | shares | 1,000,000 | |||||||||||||||||
VPAgreement [Member] | ||||||||||||||||||
Stock-based compensation expense | $ 52,500 | $ 35,000 | ||||||||||||||||
VPAgreement [Member] | Vice President [Member] | ||||||||||||||||||
Stock-based compensation expense | $ 35,000 | |||||||||||||||||
Number of common stock issued | shares | 750,000 | |||||||||||||||||
Stock granted | shares | 1,000,000 | |||||||||||||||||
Common stock share price | $ / shares | $ 0.035 | |||||||||||||||||
Five-Year Lease Agreement [Member] | Anu Life Sciences Inc [Member] | ||||||||||||||||||
Security deposit | $ 37,275 | |||||||||||||||||
Laboratory and administrative office space | ft² | 3,500 | |||||||||||||||||
Lease expiration date | Jun. 30, 2022 | |||||||||||||||||
Miami Lab Lease Agreement [Member] | ||||||||||||||||||
Lease expense | $ 25,803 | |||||||||||||||||
Equipment | $ 239,595 | |||||||||||||||||
Security deposit | $ 6,332 | |||||||||||||||||
Minimum monthly lease payments | $ 5,200 | $ 4,513 |
15. Mint Organics Inc. (Details
15. Mint Organics Inc. (Details) | 9 Months Ended |
Jul. 31, 2019$ / sharesshares | |
Warrants, Total | 237 |
Albert Mitrani [Member] | |
Warrants, Total | 79 |
Exercise Price | $ / shares | $ 0.001 |
Chief Financial Officer [Member] | |
Warrants, Total | 79 |
Exercise Price | $ / shares | $ 0.001 |
Dr. Maria I. Mitrani [Member] | |
Warrants, Total | 79 |
Exercise Price | $ / shares | $ 0.001 |
15. Mint Organics Inc. (Detai_2
15. Mint Organics Inc. (Details Narrative) - USD ($) | May 02, 2019 | May 17, 2017 | Apr. 06, 2017 | Mar. 29, 2017 | Mar. 17, 2017 | Mar. 08, 2017 | Feb. 28, 2017 | Feb. 14, 2017 | Nov. 04, 2016 | Sep. 23, 2020 | Oct. 31, 2017 | Feb. 28, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Feb. 26, 2020 | Oct. 31, 2018 | Nov. 02, 2016 |
Proceeds from debt financing | $ 300,000 | ||||||||||||||||
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Number of common stock warrants exercisable | 150,000 | ||||||||||||||||
Exercise price of warrants | $ 0.02 | $ 0.15 | $ 0.15 | $ 0.02 | |||||||||||||
Fair value of warrant issued | 34,949 | ||||||||||||||||
Amortization | $ 0 | 6,889 | |||||||||||||||
Number of common stock issued | 484,136,805 | 436,490,110 | |||||||||||||||
Proceeds from sale of units | $ 60,000 | $ 30,000 | $ 400,000 | ||||||||||||||
Number of units sold during the period | 100,000 | ||||||||||||||||
Participation Agreement [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.15 | ||||||||||||||||
Employment Agreement [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.02 | ||||||||||||||||
Taddeo [Member] | Taddeo Agreement [Member] | |||||||||||||||||
Number of units sold during the period | 1,000,000 | ||||||||||||||||
Bothwell [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||
Number of units sold during the period | 1,000,000 | ||||||||||||||||
Agents [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||
Number of units sold during the period | 2,000,000 | ||||||||||||||||
Werber [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||
Number of units sold during the period | 1,000,000 | ||||||||||||||||
Ian T. Bothwell [Member] | |||||||||||||||||
Proceeds from debt financing | $ 1,500,000 | ||||||||||||||||
Exercise price of warrants | $ 0.06 | ||||||||||||||||
Ian T. Bothwell [Member] | Securities Purchase Agreement [Member] | |||||||||||||||||
Proceeds from debt financing | $ 300,000 | ||||||||||||||||
Ian T. Bothwell [Member] | Executive Employment Agreement [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.06 | ||||||||||||||||
Related Party [Member] | |||||||||||||||||
Proceeds from sale of units | $ 10,000 | ||||||||||||||||
Number of units sold during the period | 250,000 | 250,000 | |||||||||||||||
Mint CEO [Member] | Taddeo Employment Agreement [Member] | |||||||||||||||||
Base salary | $ 180,000 | ||||||||||||||||
Adjustment of annual rate of base salary acquire of license | 250,000 | ||||||||||||||||
Health, dental and automobile expense per month | $ 1,000 | ||||||||||||||||
Number of unregistered common stock shares granted | 1,000,000 | ||||||||||||||||
Mint CEO [Member] | Employment Agreement [Member] | |||||||||||||||||
Accrued and unpaid signing bonus | $ 25,000 | ||||||||||||||||
Chief Science Officer [Member] | |||||||||||||||||
Number of unregistered common stock shares granted | 7,500,000 | ||||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.028 | ||||||||||||||||
Number of unregistered common stock shares granted | 15,000,000 | ||||||||||||||||
Terrell Suddarth [Member] | Executive Employment Agreement [Member] | |||||||||||||||||
Exercise price of warrants | 0.02 | ||||||||||||||||
Dr. Maria Ines Mitrani [Member] | |||||||||||||||||
Exercise price of warrants | 0.06 | ||||||||||||||||
Dr. Maria Ines Mitrani [Member] | Executive Employment Agreement [Member] | |||||||||||||||||
Exercise price of warrants | 0.06 | ||||||||||||||||
Dr. Bruce Werber [Member] | |||||||||||||||||
Exercise price of warrants | 0.06 | ||||||||||||||||
Dr. Bruce Werber [Member] | Executive Employment Agreement [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.06 | ||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||
Number of unregistered common stock shares granted | 15,000,000 | ||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 0 | 400 | |||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Number of preferred stock issued | 0 | 400 | |||||||||||||||
Common Stock [Member] | |||||||||||||||||
Number of units sold during the period | 600,000 | 300,000 | |||||||||||||||
Class A Voting Common Stock [Member] | Participation Agreement [Member] | |||||||||||||||||
Common stock, shares authorized | 550 | ||||||||||||||||
Equity ownership percentage | 100.00% | ||||||||||||||||
Series B Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 0 | 1,000,000 | |||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Number of preferred stock issued | 0 | 0 | |||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||||||||
Number of preferred stock issued | 400 | 100 | |||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | Chief Operating Officer [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | Chief Science Officer [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | Chief Financial Officer [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Series A Non-Convertible Preferred Stock [Member] | Chief Executive Officer [Member] | |||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Number of preferred stock issued | 100 | 100 | |||||||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||||||||||||
Mr. Wayne Rohrbaugh [Member] | |||||||||||||||||
Number of preferred stock issued | 150 | 150 | |||||||||||||||
Exercise price of warrants | $ 0.15 | $ 0.15 | |||||||||||||||
Number of shares exchanged | 4,400,000 | ||||||||||||||||
Chief Operating Officer [Member] | |||||||||||||||||
Number of unregistered common stock shares granted | 1,000,000 | ||||||||||||||||
Number of units sold during the period | 250,000 | ||||||||||||||||
Chief Operating Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.001 | $ 0.028 | |||||||||||||||
Number of unregistered common stock shares granted | 1,000,000 | ||||||||||||||||
Chief Financial Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Investors [Member] | Participation Agreement [Member] | |||||||||||||||||
Non-controlling interest percentage | 55.00% | ||||||||||||||||
Investments | $ 150,000 | ||||||||||||||||
Proceeds from debt financing | $ 150,000 | ||||||||||||||||
Chief Science Officer [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.001 | ||||||||||||||||
Chief Science Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||
Exercise price of warrants | $ 0.001 | ||||||||||||||||
Chief Executive Officer [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||||||||
Number of preferred stock issued | 100 | ||||||||||||||||
Mr. Peter Taddeo [Member] | |||||||||||||||||
Number of preferred stock issued | 150 | 150 | |||||||||||||||
Exercise price of warrants | $ 0.15 | $ 0.15 | |||||||||||||||
Mint Organics Florida, Inc [Member] | |||||||||||||||||
Equity ownership percentage | 3.00% | ||||||||||||||||
Proceeds from sale of units | $ 100,000 | ||||||||||||||||
Number of units sold during the period | 21.25 | ||||||||||||||||
Non-controlling equity holders percentage | 22.50% | 4.00% | |||||||||||||||
Non-controlling interests amount | $ 0 | $ 42,977 | |||||||||||||||
Number of shares aquired | 21.25 | ||||||||||||||||
Number of shares exchanged | 2,400,000 | ||||||||||||||||
Mint Organics Florida, Inc [Member] | Class B Non-Voting Common Stock [Member] | |||||||||||||||||
Equity ownership percentage | 10.00% | ||||||||||||||||
Conversion of stock, amount | $ 1,000,000 | ||||||||||||||||
Conversion of stock, shares converted | 212.5 | ||||||||||||||||
Mint Organics Florida, Inc [Member] | Class B Non-Voting Common Stock [Member] | Participation Agreement [Member] | |||||||||||||||||
Common stock, shares authorized | 10,000 | ||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||
Common stock voting rights | The Class B Common Stock shall not be entitled to vote on any matters. | ||||||||||||||||
Mint Organics Florida, Inc [Member] | Class A Voting Common Stock [Member] | |||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Number of common stock issued | 2,125 | 2,125 | |||||||||||||||
Fair consideration for the initial issuance of common stock | $ 0.001 | $ 0.001 | |||||||||||||||
Mint Organics Florida, Inc [Member] | Class A Voting Common Stock [Member] | Participation Agreement [Member] | |||||||||||||||||
Common stock, shares authorized | 10,000 | ||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||
Common stock voting rights | The amount of each share of the Mint Series A Preferred Stock shall automatically convert into 1.5 shares of Class B Common Stock of Mint Organics upon the earlier of (a) the fifth anniversary of the date such share of Mint Series A Preferred Stock was issued; or (b) Mint Organics’ receipt of the necessary licenses and permits required to operate business operations in the medical cannabis industry. | ||||||||||||||||
Mint Organics [Member] | |||||||||||||||||
Non-controlling equity holders percentage | 0.00% | 0.00% | |||||||||||||||
Non-controlling interests amount | $ 0 | $ 42,977 | |||||||||||||||
Mint Organics [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 300 | ||||||||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||||||||
Percentage of outstanding capital stock represents the common stock conversion | 45.00% | ||||||||||||||||
Number of shares aquired | 150 | ||||||||||||||||
Warrants purchased | 150,000 | ||||||||||||||||
Mint Organics Inc [Member] | Participation Agreement [Member] | |||||||||||||||||
Preferred stock, shares authorized | 1,000 | ||||||||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||||||||
Mint Organics Inc [Member] | Class B Non-Voting Common Stock [Member] | Participation Agreement [Member] | |||||||||||||||||
Common stock, shares authorized | 1,000 | ||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||
Mint Organics Inc [Member] | Series A Convertible Preferred Stock [Member] | |||||||||||||||||
Preferred stock, shares authorized | 300 | 300 | |||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||
Preferred stock, stated value | $ 1,000 | $ 1,000 | |||||||||||||||
Convertible preferred stock description | The amount of each share of the Mint Series A Preferred Stock shall automatically convert into 1.5 shares of Class B Common Stock of Mint Organics upon the earlier of (a) the fifth anniversary of the date such share of Mint Series A Preferred Stock was issued; or (b) Mint Organics’ receipt of the necessary licenses and permits required to operate business operations in the medical cannabis industry. | ||||||||||||||||
Percentage of outstanding capital stock represents the common stock conversion | 45.00% | ||||||||||||||||
Mint Organics Inc [Member] | Class A Voting Common Stock [Member] | Participation Agreement [Member] | |||||||||||||||||
Common stock, shares authorized | 1,000 | ||||||||||||||||
Common stock, par value | $ 0.001 | ||||||||||||||||
Mint Organics Inc [Member] | Investors [Member] | Series A Preferred Stock [Member] | |||||||||||||||||
Number of preferred stock issued | 150 | 150 |
16. Liabilities Attributable _3
16. Liabilities Attributable to Discontinued Operations (Details - Schedule of Assets and Liabilities) - USD ($) | Jul. 31, 2019 | Oct. 31, 2018 |
Liabilities | ||
Liabilities, total | $ 125,851 | $ 125,851 |
Ethan NY [Member] | ||
Assets | 0 | 0 |
Liabilities | ||
Accounts payable | 94,835 | 94,835 |
Accrued expenses | 31,016 | 31,016 |
Liabilities, total | $ 125,851 | $ 125,851 |
17. Segment Information (Detail
17. Segment Information (Details Narrative) - Integer | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | 1 |